Thanks for updating so fast lucid. I'm pretty sure I had set the correct layer set up, but I'll try it out with the new version when I get home from work. Also I'll make a cap to see if i can reproduce the blurriness later today. I was using a small pixel font with the aliasing of the layer set to point if that helps any.
Edit: OK I recreated it during my lunchbreak and found the solution to both problems. I was creating a spriteFont object on the menu layout, then when you enter the game, I was creating a second one for a cinematic. I guess I forgot to set the sprite to use for the cinematic one, but somehow it still worked because it was writing the text. However the font was blurred and it was drawing on the wrong layer. Once I set the sprite to use for the cinematic one, it fixed both problems.
Thanks for looking into it.