Blurry textures

I've just reinstalled FS9 on my new PC and have been trying to configure it for best scenery views for a couple of days now but still get a blurring of textures. My old system ran like a dream
2800 processor
512MB RAM
60GB Hard Drive
6800 LE Nvidia Graphics 128MB
My new one runs much better and the aircraft look amazing but i'm getting a blurring of textures which never used to happen on my old system. My new one is
3200 processor
2GB RAM
160GB Hard Drive
7600 GT Nvidia 3D Graphics 256MB
I can set everything to max and it runs sweet as a nut but with this texture blurring at a certain distance.
Any help or ideas would be greatly appreciated!