Since yesterday, video and graphics on my Windows 7 desktop seem to have become smoothed out and blurred slightly. The last thing I did on the machine was play Fallout New Vegas for the first time.

Note how smoothed out the character on the right is - a lot of definition seems to have been lost. It's really annoying and happens regardless of what I watch.
My system specs are:
- Windows 7 Ultimate 64-bit
- 6GB RAM
- Sapphire HD 5770 Vapor-X 1GB
- Gigabyte X58A-UD3R Motherboard
- Coolermaster Silent Pro M series 700W power supply
Any ideas what might be wrong?