Layers blur after transform

[BambiLynn23]

OK, so I stopped using artrage after every time I used transform on a layer, after I hit ok, it blurs horribly. Even when the layer is much larger than the size I am working with and I just shrink it to fit my area, I get a blur. It makes doing design type work very frustrating as I cannot re-size any elements without the fuzz. Anyone else having this issue?

[HannahRage]

What size is the canvas itself? It sounds like you may be working at a very small size and losing image data.