Ok, I think I might have misunderstood what you meant by blurry, StevenNevets.
There is technically two types of blurry effects. The one I was describing, occuring when Anti-Aliasing is applied.
The second type is what I now think you were refering to. That type of blurry effect is seen on actual surfaces/textures, onto the polygons themselves (ground, walls, ceilings, windows, etc). That blur occurs when there is very little (2x or 4x) or no Anisotropic-Filtering applied at all. Usually when there is none, then the only texture filtering you'll get is the default driver's, which is Trilinear Filtering, which in turn isn't very good in terms of image quality, especially in the distance.
What Anisotropic-Filtering does, basically, is to clear out the texture for a long distance (8x or 16x). And indeed, to apply any amount of Anisotropic-Filtering in Battlefield 2, you have to actually activate it in the Catalyst Control Center, since BF2's in-game options do not feature any A-F activation (just like in sooooo many games out there, God knows why), just like gersson mentioned.
Something else I'd like to mention about Anisotropic-Filtering, is that you can activate a new type of A-F with ATi's current generation (X1800 and X1900 series), which is High Quality A-F (just a square you need to click to activate the feature, and then simply set the amount of A-F you desire, which will automatically apply that chosen amount as "HQ A-F" over regular A-F). If you do select HQ A-F, then, from what I know (correct me if I am wrong anyone), it will help clear any curved surfaces, since it isn't angle-dependent for filtering textures (as in fences or roads with curved lines and such). That feature will cost you some extra frames-per-second, so don't be surprised if your performance is decreased a little (or a lot, depending on how much A-F you apply, like 16x HQ A-F, for example). But in return, the overall visual quality of the rendered/filtered scene will be worth it, believe me. And I see from the CCC picture that it shows "X1900 Series" so you'll be able to use it.
So, briefly said, leave Anti-Aliasing to Application Controlled in the CCC, but do activate Adaptive A-A in the CCC. Then set the amount of A-A from BF2's in-game options.
As for A-F (which is quite a must for BF2 indeed), set it to 8x or 16x in the CCC, and activate HQ A-F as well if you wanna try it.
Start up the game and see how it changes BF2's graphics
And thanks gersson for pointing to A-F, I was focused on A-A for some reasons.