pacek

I'm not seeing blurry graphics. They look pretty good.

Me too.

Honestly, I don't get all the comments about blurry graphics. That's totally not what I'm getting on my computer, and I'm often left wondering whether we are playing the same game.

The upscaling algorithm BG:EE is using is the best available. That's not a matter of opinion so much as a matter of maths: No filter is better, barring perhaps Lanczos (and even that is debatable). It is far superior than anything any GPU or computer monitor could possibly do.
Some (minor) blurriness is unavoidable as it is inherent to the way upscaling works to begin with, but the blurriness in BG:EE really is pretty minor. I know there are issues with FXAA (nVIDIA) and MLAA (ATi), so people experiencing lots of blur should try to disable those.

Do you know if they tried Genuine Fractals. From examples I've seen (albeit fom the proprieters) it seems fairly impressive.

How does a 300% increase get you to either 160 or 200??

Interestingly, the increase from 40 to 50 (Lost items you say) is the same as 160 to 200. Not a solution but might be a clue.