Ubuntu Linux

Hi, I’m using Ubuntu 9.04 and when I try to change the background, it always looks blurry. It doesn’t matter if I right click and image and choose ‘set as Desktop Background’ or if I first save the image and then try to set it as the background, it’s always blurry. I’ve tried various sizes of images and it’s all the same. I checked my settings and they are
Resolution: 1366 x 768 (16:9) and also 96 x 96 dpi.
My icons are very clear, browser is very clear, programs clear, etc…just the background turns out blurry. Any suggestions?