Okay, well, that's because Epic of Serinor forces the game to played in 320x240 resolution in its system.vc. So any changes to xres and yres just end up resizing the window and scaling the screen to fit resolution. This ensures that the player doesn't screw around with their game's resolution settings.
SetResolution(320, 240);
Sully, on the other hand, you can see looks very BROKEN as you can see with resolution changed. But individual pixels stay the same. That tiled pattern goes past the screen because it relies on the screen width to know how much to draw, but pretty much everything else is in the 320x240 top-left block of the screen.
Moral of story: don't change other game's resolutions as an example. Changing resolutions doesn't make things any more "blurry" unless the screen is being scaled to fit the window size.
Resolution does exactly what it should, so don't worry. Just maek gamz.