The blur most likely comes from the anti-aliasing performed by your video card in DirectX mode. The drivers I have installed for my GeForce256 allow me to toggle this on and off from the desktop video settings and consequently I get smooth sprites. If DBPro has to "stretch" your display, then DX will anti-alias the sprites by default, for example if you're running in a desktop res of 1024x768 but your program is designed for 640x480 then it will resize to match your desktop res depending on the mode you run in (as configured by the settings panel in the IDE).
It's not DBPro itself that is smoothing out those graphics, it's a combination of DBPro using DX8 and video card settings unfortunately.
Cheers,
Rich
"Gentlemen, we are about to short-circuit the Universe!"
DB Team / Atari ST / DarkForge / Retro Gaming