About the blur effect... Change or turn off FoV. That will do the trick.
I usually turn it off as i can't stand this annoying blur effect
As for the resolution. Try to do fullscreen or if you have that already, the opposite, borderlands window mode. Usually that does it.
But in this older version i think the ui isn't scalable. red51 could tell more.
The new version,
for which just a patch came out, should provide a better control. However its not yet in a state to replace the old version.
Both are extremely fun to play though, if you enjoy building