I've been having a problem with the appearance of PS:T - all of the screens with text are blurry. On the character stat screen the text will clear briefly if you click on or modify it, and in the dialogue it will briefly clear if you click on a selection--but of course by then it's too late, who knows what you might have selected. Anyway, I installed a bunch of mods, including the widescreen and UI mods, but although the game seemed to run faster and gave me a very sharp picture (using Infinity Engine settings), the text was still hosed.

Solution: Turn off morphological filtering. This may not work for everyone, but the game looks and runs perfectly now. BTW, I'm running Win 7, 64-bit version, with a Radeon 6800-series card.
BTW, The morphological filter fix may also work on other games using the Infinity Engine, such as Baldur's Gate, Icewind Dale, Fallout(?). Anyway, worth trying.

Thank you tysonius!

I have just experienced the same problem with PST and was on the edge of a "nervous breakdown"!!

Thank you for the solution!

I know exactly what you mean redwiking... I finally got all the mods working that tysonius mentioned as well except the blurry text eluded me. Hah, go figure. Same card and everything as you tysonius.

Thank you tysonius for this as well!

I can finally play this masterpiece because of you :)

Morphological filtering is a pixel effect leveraged on all the pixels on screen. It doesn't matter if you're in 3d mode or 2d--the affect will still be applied. Best to leave it off. It was meant for a situation in which a game would not allow any kind of FSAA to be applied, either in-game or externally through the control panel. It allows you to get a slight FSAA-effect in games where otherwise you could not. It doesn't do a particularly good job with text as you've seen...;)