It makes it look tacky. When I disable render effects, that silly over-blur is removed.
See http://imgur.com/a/WisSv
There is a lot of texture information lost from that overblur. Try to turn it down a bit. The blur makes it look like a low-res JPEG, rather than something in the far background.
Umm, one screenshot shows a blurred background, the other shows one without. The one without has a much clearer rendering, albeit the one with blur is supposed to be intentional by the game. The problem is the blur algorithm the game uses seems too... intense.
Sorry, didn't see that other screenshot. Does this have to do with anti-aliasing? Otherwise I'm clueless xD
Maybe because lower quality settings DO use crappy JPEGs as the texture for the skybox?
No, I'm talking about ticking the checkbox on for render effects. Having *high* mode on.
Blur? You mean pixelization. Try increasing your graphics quality.