New to Blu-ray, still seeing blurry images

[TheLibrarian]

Hi all,

Just recently bought my first Blu-Ray player, and a few titles.

So far I have only watched Rocky III and Willy Wonka and the Chocolate Factory and whilst I can see the difference between DVD and Blu-Ray there are still some blurry scenes here and there. It's not even the whole frame, generally a character's facial features are clearly defined but the background would be messy.

Is this normal? Could it be to do with my TV settings? Maybe it's to do with the transfers and the effort the studios put into them?

I have a 32" (which is 720p), but probably won't be buying anything larger soon as my masters tuition fees are what's most important now.

Also, this might be a silly question so I apologize in advance but is it possible if I play my blu-rays too much on a 720p TV the disc content will be compressed to the point they will never play in 1080p on a full HD TV?

Also mods, if this thread is in the wrong forum feel free to move.