I just toyed with the same things this time using MC360 skin and the result is the same, I guess the blurring of the image is something that can't be helped?
One thing I was trying to do:
When in full-screen, I wanted to add a reflection image (like apple use in their ads) as if the CD is sitting on a glossy black table.
So I opened photoshop, did a simple black fading to transparent gradient and saved as PNG.
I figured, looking at the xml that I'd be able to add another item to this screen (the gradient),
and also another (up-side-down) image of the album art. Lay the gradient image over the inverted album art to get the effect I'm after.
But, I came to look at the xml again and noticed for items like the background panel (which typically the album infos are laid on top of), they are referred to by xbmc as 'textures'. A quick hunt through the xbmc folders on the xbox and I see textures.xpr, is this the file that contains the panel graphic PNG I mentioned? If so, it looks like I am stuck right? Unless I can edit that XPR file somehow? (or is that not really allowed as such)?
Other than this, I can't see how I can achieve what I'm after.
Bit stuck, any help appreciated.
Cheers.