I figured out what the issue was. It has to do with the one of the settings for the theme. If you have the theme set to responsive it affects the images to change with the size of the view point of the website. Since the images have to respond to the size of the website it seems that how the theme handles the images being saved with this setting causes them to be blurry. I removed the setting for responsive an set it to off and regenerated the images. Now my issue is fixed.
Not to sure why no one else has been able to explain this issue or resolve it since it seems like a pretty common issue of now. So if I where and dealing this remove the setting below:
theme options > General Settings >Enable Responsive = set to off and you should have fixed your blurry image issue. Also do not forget to regenerate your images once you do this change.