I just purchased Rage off of Steam. It is running smooth as silk for me, but the textures are not just blurry; it seems as though many of them are straight up missing. The issue plagues every single frame of the game and is making it utterly unplayable. I am running it on a 1GB Radeon 5870 with the latest (11.12) drivers. My system is Win 7 Home 64 bit, with an i7 920 and 9GB RAM.
More aboutrage texture issues
You installed the high-res patch yet? The game was known for good graphics, but shitty textures from the start, and if I'm not mistaken a high-res patch was released to fix most of these issues.
Where is this hi-res patch? As I installed from Steam, I am running the latest version of the game.
I'm not quite sure. I don't have the game myself, but I know a high-res patch/mod exists for the game. Try Googling it, I'm at work so the server blocks the links to those kind of stuff. Apologies...