First, I should tell you that I am, and have been a Video/Film Editor for almost 20 years, so I hope you will trust me when I tell you that you are not imagining things when you say that the Video looks a little blury, but their is not much that can be done about that. The Washed out part are most likely because you haven't adjusted you monitor for Video properly.
Here are a few unfortunate facts:
1) Standard, American Broadcast Television, even at it's best, is only 380 lines of resolution. In the Editing Suite (before broadcast, it can be as much as 560 lines of resolution. A VHS Video recorder can only reproduce about 300 lines (in SP mode, EP or SLP is less).
2) a Computer screen can not actually reproduce the colors of a T.V. Broadcast accurately. What you see is a "simulated" Television picture, because the Television and the computer screen work on completely different principles. It sounds weird, but that's how it was explained to me.
The main reason it looks so blurry is that you are sitting 1-3 feet away from the Computer screen. If you sat back about as far as you normally sit from you T.V. (about 6-12 feet), it would look a lot better.
3) A DVD (when using a RCA type or S-Video cable connector) you get 480-560 Lines of resolution (compared to 840-1024 lines of most computer screens), which is why people think DVDs look so much better.
If you want to test this, turn on a sharp channel or play a DVD on you T.V., then go sit the same distance from you T.V. as you are sitting from your Computer screen. You can also try outputting you computer screen signal to your T.V. (if you have a "Video In" on your T.V.) and see if you can read any of this on it.
For the sound, I had a similar problem. Here are a few things to check.
1. For play back, check to see if the sound is up all the way on the "on screen" controller (tuner). Look in the lower right and check if the red "L.E.D.s" extend out to the edge of the dark blue.
2. Check to see if the wires coming out of DVD player are connected to the Right and Left Audio out, and not to the Left Audio out and one of the "Component Video" output connectors (their are 3- Y, Pb, and Pr).
3) If that doesn't fix it, you might want to see if you can do what I did, I took one of my extra CD-Rom to SoundBlaster connector cables, and connected the ATI card to my Audio AUX connector on my Motherboard. For some odd reason, which I have yet to figure out, after months of it working without one, the audio stopped working correctly, but when I added the internal audio cable, it's worked great ever since.
Regarding the sync problem, I need more info to advise you. Are you talking about the sound and the picture not matching on the computer screen, or is it that the sound and picture on the computer is slightly behind the T.V. (in a different part of the room). I did see the first problem today (after upgrading from ver. 5.6 to 5.7), but it fixed it's self after logging off (the computer user), then logging back on. The second situation, I fix by turning off the sound while recording (TV-on-Demand).
Here's some sites with SMPTE Color Bars for adjusting your monitor, but like I said, a computer screen will never look perfect:
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http://www.mediacollege.com/video/test-patterns/colour-bars-smpte.html>
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http://www.greatdv.com/video/smptebars2.htm>
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http://www.greatdv.com/video/smptebars.htm>
Let me know if this helped and if I can help you further, I'm sure I'm forgetting a few things.