I will not take any credit for this fix it's just a lucky finding after digging and digging all over the net for a long time. It worked for me like a charm, I hope it will work for the rest of you on Tmo with the same blurry mms issue.
First of all the phone needs to be 3G unlocked and jailbroken.
REMOVE all the patches for mms.
Open CYDIA and click on MANAGE, SOURCES, EDIT, ADD then type the following address: "repo.*****************" just remove quotes
Reload and install "MMS & Tethering Settings" package from sections>SiNfuliPhone.
After you have installed the package exit out of Cydia.
Goto Settings > General > Reset and tap on Reset Network Settings. It will delete out all your old network settings.
After your phone has rebooted, go to Settings > General > Network > Cellular Data Network and change APN settings to internet2.voicestream.com or internet3, or epc, or wap. which ever one you signed up with.
Under MMS change the address to wap.voicestream.com but leave all the digits intact under mmsc, mms proxy, max message, mms ua.
Also under DATA ROAMING turn it ON.
Restart the phone. And you are done.
Now you have clear MMS and on top of it all Internet tethering with wich you can connect your iphone to your laptop and use the phone as a wireless modem (as long as you have signal with E)
Hope I helped you out
3G, Tmo, Unlocked and Jailbroken, 16GB