I've looked everywhere online, and I cannot find an answer to this... My Docky Icons are blurry. I currently have the Faenza icons enabled on Ubuntu 11.10, and they look great everywhere else on my system. But my icons on docky are blurry. I have removed them all and replaced them. I have closed docky, updated docky, restarted my system; but they are still blurry. Any help is greatly appreciated!
I figured out my own question, but since I had trouble finding an answer, I thought I should post my fix.
So it seems that when adjusting your Zoom and Icon size, you need to make sure that your Icon size has a lower value than the Zoom percentage. (Icon size needs to be at least 50% or lower than your current Zoom percentage).
I had to play with this a little bit, and you may as well. But hopefully this will save someone the agony I've been having.