Textures blurry at a distance

It's called Mip-mapping. Basically, in order to save on texture memory/load times, distant objects use a lower resolution texture than objects nearby, where you can actually see more detail. You can specify how many levels of mip-maps are used in the Video options. Turning them off will force the program to use the full resolution texture for all distances, but may cause performance issues on limited hardware.

Previous versions didn't have mip-mapping available, which is why it appears this way now. Another option is to turn on/up Anisotropic Filtering, also newly added to the Video options, assuming your video card can handle the higher levels.