Hah, I didn't fix my game, but instead I fixed my LED TV display! Apparently HDMI connections are sharp. And the TV was sharpening the picture even more which looked awful. Fixed it, my ps3 finally looks good! (AND I can finally use 1920x1080p on my PC)
Anyway, sorry for going off topic, I'm just happy. Going to fix AC3 now, thank you nenele84.