I have my MBP hooked up to a 42 inch Westinghouse true 1080p HDTV via a DVI-HDMI Cable (6 foot) from walmart. It's an off brand cable, which may have something to do with it, but I've recently contracted the same problem.
I only run the westinghouse display, disabling the laptop display by closing the lid and bringing it out of standby when it's closed. I run the display at 1920 by 1080 at 60Hz.
I've found that when the mouse is in the lower right quadrant of the screen, no shifting or blurring occurs.
when the mouse is moved above the halfway point of the screen, a stretch occurs that begins from the top blurring all of the pixels after the first 200 or so lines.
when I move my mouse to the left half of the screen, a full pixel shift occurs, from left to right as my mouse goes from right to left.
I have yet to figure out if my cable is at fault, though it is suspect, but it's the first thing on my list after i get done scrubbing all the forums ever with "fuzzy", "mac", "external" and "display" in them.
For those of you with issues of clarity when using "1080p" tv's:
A lot of your TV's are not 1080p, but have an internal signal processor that downscales the video input from 1920x1080 to 1337x720. If it is a low quality signal processor, or there is any discrepancy between the actual native resolution and the 'supported' resolution, you may get blurring.
Remember that if you're piping out via a VGA line, you're going to max at 720p, and can not push 1080p over it.
To the best of my knowledge, there are only a handful of companies actually making LCD panels, and fewer still have anything under 40 inches that is native to 1080p. I know of 37" 1080p panels from Sharp, LG, Samsung, and the korean company that made mine (don't know the name though). I hope my info helps others, I'm wicked tired of fuzzy letters since the crisp display is one of the things I love most about my mac.