its not exactly blurry but looks pixelated but not to the point of unrecognizable..just not crisp
i tried rendering it and except for the very begnning(it was basically that blurry) when im pushing record the camera stabilized itself and it was clear
A screenshot would help. It would also help to know the kind of footage. I'm not that familiar with the camera so I don't know whether it is AVCHD or Mpeg Compressed or XDCam.... I also don't know what the frame size is or whether or not it is interlaced. All of these change the appearance of the footage in the production environment.
If your footage is rectangular pixels AE could be giving you a soft preview with Pixel Aspect Ratio Correction preview turned on you could be seeing a soft preview. Once again, a screenshot and info about your comp would help diagnose the problem. If the footage is selected in the Project Panel then we'll see what kind of footage you have.