Hi, I have some issues with the graphics not displaying the text well in some areas of the game. When i look at the crew , I can't read the writing for 'dismiss' it looks fuzzy or blurred for some reason and the same thing in the hangar area. Also, at times there are graphic lines/ borders around the ship, like it was put in a box or something.

A separate issue ,this may be intended , but on saving, it seems you can only save on exit. I don't see any other options. Why no save & continue? When after saving/ quitting, you reload and play or 'continue'....if you die or whatever , that's it, continue is grayed out. You can only load the game one time. It would be nice if after you die to reload and try something else sometimes instead of starting over from scratch.

after your save and exit, you can copy the continue.sav (in your profile folder) elsewhere if you wish

The reason you can only save on exit is because it is exactly intended that you cannot "restore" your game.
Decisions are final, death is final, loss of ship is final.

This is the part where FTL shows it's roguelike elements. Gameplay is fast and short, in turn you die very easily and all deaths are final.

As for the graphics, if you have an ATI card go into the settings (right-click on the empty desktop), then under Application Settings under Gaming set FLT as an application and turn off Application Settings for Anti-Aliasing, and either disable it entirely, or turn off Edge-Detect and Morphological.

I've got the answer to that one. Your graphics card must support the OpenGL 2.1 specification, specifically GL_ARB_framebuffer_object. You should have also noticed an extreme slowdown when in the nebula zones as well, especially when in combat.

The solution is to lie about what your graphic card's OpenGL driver supports and hope for the best. In my case, an Inspiron 6400 with an X1400 video card on WIndows 8 had the same issue. Solution (per Matthew) is to add the line

swapTexture=1

at the end of your settings.ini file in the directory where you installed your game.

Quoting Matthew:
I'm discovering that sometimes video drivers will lie about which OpenGL features it supports as well as not supporting them. That line is a manual override to switch into another texture mode that FTL should be detecting based on your video card.

source:
http://www.ftlgame.com/forum/viewtopic.php?f=9&t=1911&sid=359909cfe788cd88c0eb544897503192&start=20

This could cause your game to crash if your openGL drivers don't support 2.1 and that extension, so remove it if it doesn't work.

PS If you want Windows Vista or 7 drivers AMD/ATi drivers for Windows 8, and you can't get them from AMD anymore, like me, go here:
<span class="bold">IE Only!</span> http://catalog.update.microsoft.com/
They also have XP drivers for Windows Vista/7. Of course, it is preferable to get the updates from the manufacturer, but if you just can't, this will at least get you running.

Good Luck!

edit: corrected desired game OpenGL extension name