I downloaded iOS7 and now my lock screen photo is blurred.

It was fine in iOS 6. I tried using one of the Apple photos for the lock screen and it blurs also.
I'm not having that problem with the home screen.
Any ideas?

Apple clearly desinged the lockscreen to blur, whenever anything other than the TIME has to display there.
Took me a long time to realize that, for me, the problem was audio playback. For others, it is notifications, texts, etc.
Whenever you use AUDIO, the iOS displays the "playback control buttons" on the lockscreen, which causes the blurred background [presumably in order to better see the displayed info]. But, as soon as I PAUSE, the screen clears right up.
If your issue is notifications, this should be fixable; because you should be able to NOT DISPLAY notifications on the lockscreen.
I will be checking to see if there is an option to NOT display the "playback control buttons" on the lockscreen - given new control center, those buttons are no longer even necessary, especially when I can access the control center from the lockscreen.
We need to request that apple add option to STOP blur effect on the lockscreen.
You will NOT see this effect on the home screen; because, in theory, the iOS does not "display info" there - only icons.
Hope this helps! Been very annoying for me, as well!

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