So after fighting with it for a very long time and registry settings, I figured out how to fix my blurryness problem with FFXI's windowed mode.
First off, the resolution you specify isn't in fact the game area but the whole window, and FFXI *doesn't* compensate this by lower the resolution of FFXI's game area slightly but by squishing it to fit.
So that means that even though you set FFXI to let's say, 1600x900, it won't be resized to 1588x871 (which is what prntscrn + paste in photoshop got me). That funky rez is due to the border and titlebar taking that much space. 12 and 29 respectively. Instead, you're running a 1600x900 game screen zoomed out to 1588x871, so naturally things look blurry, out of focus etc.
The solution to this is naturally, resizing the window but not game screen size. Manually it's nearly impossible so I turned to Shiftwindow (http://grismar.net/shiftwindow/) an application for EVE-Online mostly to resize/move your window automatically.
Simply launch it while ffxi windowed is running, name your trigger, get the window title/filename, capture the resolution, and then ADD 12px to the width and 29px to the Height. Trigger it and voila. FFXI windowed is as sharp as windower. (see SS below for help)
FFXI default size:
http://img216.imageshack.us/img216/4...rry1ye9.th.jpg
Note the equipment icons and chat window, the text is blurry at parts and the icon is lacking detail.
FFXI resized:
http://img219.imageshack.us/img219/5...rry2tc3.th.jpg
Again, note the chat and equip icons.
ShiftWindow settings:
http://img219.imageshack.us/img219/1...rry3ae2.th.jpg
I can't really get a false fullscreen due to how size is restricted on FFXI windowed mode >
Hope this helps someone, and hey. Shiftwindow is a useful app in any case. I've been using it for years and the EVE community has a more specific version nowadays. I'm very confident it's legit, but as always (and I stress this with anything off the net) feel free to scan it yourselves.
EDIT!
GAH just realized that window border/title size is relative12 and 29 might not be the sizes on your machine.
XI Wiki

