@BoH_Havoc: The first DOF problem still exists with 1024x768, but the second looks like a problem with 16:10 (1680x1050). The first problem also exists with your testlevel. Just start the testlevel and rotate the cam tilt to look with the center at the water in direction of your human models and after that look directly on your human models. You can see a different on the human models blurring of the DOF shader. But maybe it's just with some graphic cards or drivers. I have a Nvidia 9800GTX and the latest drivers.
To give you a test application it needs some changes. This can need some time (I think 2 or 3 days).