That "blurred/fuzzy" look is called bokeh. There can be good bokeh and great bokeh. It all depends on the lens you are using. As the previous contributors have advised the DOF you choose to work with creates the bokeh effect.

However the quailty of the bokeh itself is the product of the lens construction. Canon's 50mm f1.8 lens produces nice bokeh, but is a little to patterned. Canons 50mm f1.4 produces smooth great bokeh. This link gives a nice comparison of the two lenses I have mentioned..

http://photo.net/equipment/canon/ef50/