A fuzzy television screen is generally not the fault of the game console itself, but of your television.
The Xbox 360 is an HD game console, and from personal experience, trying to render an hd image in 480i Standard Definition will cause it to look somewhat fuzzy regardless of the television.
Just to make sure it is not the Xbox, I would, if possible, suggest you try the 360 on another television, preferrably with the HD cables (remember that there's a switch on the cable itself that you will need to switch from SD to HD).
Unfortunately, if you do not have access to a high def television, you can always fiddle with the contrast and sharpness on your standard def TV to reduce the fuzzyness, but the screen will always be somewhat fuzzy.
I realize this is probably not the answer you wanted, but to solve this problem for my own Xbox, I ended up purchasing an inexpensive HD Television.
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