It doesn't look blurred to me. If you're talking about on the right, are you sure it doesn't just appear that way to the eye since the gradient behind it contrasts differently on the two sides? That's how it looks. If anything, that looks sharper than in actuality since the game is supposed to be "blown up" to a larger size on a blurry television. I have to admit, playing at 320x224 is, should I say, "daring"? Why not play it 640x480 and use filtering/screen smoothing?
Edit: I was referring to the speech text box above. I just realized you may be talking about the gas station sign? If so, it's supposed to look like that.
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