It does not look blurred to me. It looks quite good considering you are trying to display a full screen capture in a 435x325 pixel box. It is so good I think I should move to metacafe.

The comment is right thought that the there is not enough definition and a lack of audio (as far as I can tell) or other commentary so that it is difficult to know what you are you are doing. Make it again using Camstudio, try and capture less of the screen and this time add audio.