Yeah, that's just.... bad. Unblend the text, and use a better font. The cut has something over his face, and it low quality. Shrink it and sharpen it or just go with a blended motion or gaussian blur. The bg is basically a lost cause. You could do some bluring with it, but that would make the whole thing too blurry probably, but it might give it that nice dreamlike effect. On the plus side, the first banner in your sig has a nice background...