For some reason all the images in the kotn are blurry, the quest icons, item icons and even the wayshrines map (I thought it was blurry to make it take time to find them but I now doubt that) I don't know what to do to fix this and its getting very annoying very quickly. Everything else in SI and the orignal oblivion seems fine, its only with kotn that the images ar blurry.

Are you using medium or small textures instead of large ? --- IIRC the devs created icons with mip maps created for the icons which they normally do not have and that can cause problems if using anything other than large with some screen resolutions.