Try selecting the image - and going to Object>Display>Performance and choosing High Quality
Thanks! But I have already tried that without it making a change in the display performance!
Is this issue persistent with all the files that you are trying to view in 'High Quality Display' or is it a specific file your facing the issue with?
If it is a file specific issue, then try to open that vector image in Illustrator and check whether the image still looks blurry.
In InDesign, for testing purpose, try to set the entire document to 'High Quality Display' via view > display performance > High Quality Display
also, select that particular image and choose Object>Display Performance> High Quality Display.
Another thing you might try - is the file saved as an .ai file?
If so - save it again but this time include a PDF compatible file - this is what is used to preview the file in other Adobe programs.
What file type from Illustrator do you use? AI, PDF or EPS or something else?
From the Better Late than Never Dep't:
Preferences --> Display Performance --> Slide the 'Vector Graphics' slider all the way to the right.