You see....BLURRY is throwing me off.
Blurry is the 3D Left/Right pictures aren't aligning to create a 3D picture.
Then there's "out of focus". Out of focus affects 2D and 3D pictures. An out of focus picture will have Blurry Text in both.
3D Blurry....that's actually "misaligned 3D" where the Left/right images never MERGE into one point so the picture look 3D.
Usually that issue can only be caused by being too close or too far from the TV set so your "polarized" screen and glasses can merge the Left and right images together.
So I'm still dealing with what you truly see when you say it's "Blurry"
And I certainly don't know if the TV is separating the picture....you should have two pictures - one viewable with the Left....and the other with the Right eye.
With top/bottom or side by side modes it's easier to see that the polarizer is working. If it's checkerboard, those being laid on top of each other, it's harder to see the differences.
Since your TV is PASSIVE, the only reason you wouldn't see a 3D picture is because the TV or DVD player's 3D sync signal isn't getting from the DVD to the TV set.
And if I think about it.....all you need is a Good HDMI 1.4 cable to deliver 3D, the DVD player's Video resolution set to either 720P or 1080P and the 3D turned on at the DVD player and TV set.
You've done all that.
You got fuzzy 3D....that sounds MORE like a Parallax issue than a Focus issue.
Focus affects 2D. LCD and Plasmas - they don't have FOCUS issues. They can't.....they're not an electron beam striking a picture tube.
Parallax issues -- Those are when the Left and right images are spread apart.
That usually happens when someone sets up the DVD player as a 42 inch TV versus 60 inch setting in the DVD's "initial setup menu"
Did your PS3 ask you what size your TV was?
Are you downloading VUDU to your PS3 too?
Did you download any software updates to your PS3? Did you check your settings AFTER you powered it down and back up?