Run the program, open up your blurry image, and look for these settings...
Menu Bar > View > Pictures
There's a few options that you can set for images. My user was set to "FAST" and the probelm was fixed when we put the picture display to "DETAILED".
I had this problem also.
I had visio on win2k (celeron 2.2mhz) on a PC Chips mother board.
I installed Visio 2002 and the service packs (now up to service pack 2)http://www.microsoft.com/downloads/details.aspx?FamilyID=00b9dfe4-ed08-4328-b355-4bc63d6267b2&DisplayLang=en
and it locked up...
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