Is this too blurry?

[Neco]

Looking for potential "suggestions" so.. Seems like an appropriate section to post this 

Especially important will be any of you who happen to have a hardware player like me (WDTV Live, for example) hooked up to an HDTV.   Mine is a rear projection screen,  so if you have an LCD that would be of great interest to me.

PC Playback opinions are appreciated as well,  however the intended viewing device for my encodes are  set top hardware devices.
On my 23" LED SyncMaster XL2370,  it honestly does look a little too blurry (wish I had known that before I used -tune animation ) however on the TV it really looks pretty good so I am having a hard time deciding whether or not to keep what I have and encode the rest, or start over with lower deblock settings.  

Eventually all the things I re-encode myself will up on a more public type tracker, aimed at people using a set top device and their TV (seeing as most VFR released are not done in a way that works on these players), so I'm trying to get it to a good balance between Image Quality and File Size.   This file is english track only, 150MB and PW protected (might as well make it difficult for snoopers to open it).   PW is the name of the file.

Death Note, Episode 1

[vuzedome]

I don't know about blurry but this looks very furry to me.

[nstgc]

For the size I suppose it isn't too bad.

[Neco]

A friend of mine characterized it more as "soft" than blurry and I think I would agree that's a better way to phrase it..

I've been experimenting with x264's  deblock settings (since --tune animation  sets it to 1:1 which is what this file is).

-1:1  actually seems to be decent as well as keeps the file size near the same (0:0 makes it much bigger).  I think I still need to try -1:0  though.

It definitely looks great on TV, and as for the PC viewing.  You could jack up the bitrate much but when you take it full screen its still gonna look not so great.   Given its an SD source and is upsizing from 720x480 though,  its not surprising.  I've never come across an  SD  scene encode that looks much better at fullscreen.

Thanks for the feedback.   I've noticed some very disturbing trends in Anime recently though.  Since a lot of them are moving to pretty much all digital production, or at least the coloring stages are.   Color banding has become a big problem.   Its much less visible on a television but still there,  and on a PC its just fucking aweful (like in this source).   

Can't fix shitty post production either..  It seems a lot of studios are neglecting to properly dither their colors down to 8 bit.   Last Exile has the same problem,  and I'm wondering if  Divergence Eve is gonna be the same once I get around to examining it too