From what I can see in this screenshots, it looks terrible

The ground textures are blurred in the distance, but also close to your plane, and the virtual cockpit textures are blurry too.
It would be good to tell us what are your actual settings in the "display" sections of the game. It looks like you should:
- put the "global texture resolution" slider to the max
- put the ground texture res to 2m or 4m (your rig is not powerfull enough for 1m textures)
- put the detail radius to the max
Also, do you have SP1 ou SP2 installed on your FSX ?