Well.... I finally got my SP1/SP2 blurries fixed!!!
The first step was to change systems, as it seems the main issue I was having did not carry over, and I no longer flew over a blurry mess.
Even with the dual core texture loading was still not what it was in the RTM version on a single core, so step two was a few cfg tweaks. I set a 10MB buffer pool, set texture bandwidth multiplier to 45, and set fiber frame fraction time to .40, with a frame rate lock of 25 or 27.
Now I have crisp textures nearly 100% of the time, even when flying the F-18 around in low speed manouvers. The only problem I see now it an occasional glitch where all the textures unload when changing views.
I'm actually quite amazed at well FSX-SP2 performs on my new rig. I can pan around the plane in spot view and its 100% smooth, with not a single stutter. My framerate stays locked at 27fps nearly all the time, with occasional drops to 23.
Here I am cruising around, and as you can see the textures look awesome. I'm able to max all the scenery sliders, with high 2.x water, and very dense autogen, while holding a constant 27fps over the european scenery see below the P-51.