Actually that "blurry" is good. Most of the time the fonts included with linux distributions are of poor quality. Windows defaults to truetype fonts (those are scalable). Most distributions don't include those truetype fonts.
To let the normal "blocky" fonts look nice Anti-aliasing is used using the so called "Xrender" extension. That is used on the new RH beta too I think.
The best thing to do would be to use some truetype (ttf) fonts. Look for howto's to get them installed. AA + truetype is really much nicer than windows.
If you don't want anything of this add the following option to the Screen/Device section of your XF86Config-4 file: