Henry,
Mine was absolutely horrible when I first tried it but there are several tweaks you can do to clear up the image. If it didn't get better for me I would be doing the same as you. The settings you want are not the same as they would be for a monitor. First, turn the antialiasing all the way up, turn off HDR and FXXA. Run supersampling at about 2 (play with this setting). And if you haven't gotten it, at least take a look at and try out flyinside. You will need to get used to the new interface with the sim but it is all worth it once you get it right. Flyinside is like magic. Where my frames would be in the twenties in tough places, flyinside bumps it up to the 90s where you need it for VR.
I'm watching out for the Vive Pro due out any time now and will be scooping that up as soon as it becomes available. It is supposed to clear up the resolution issue with vr. Then I just may take a virtual flight for a vacation to the Bahamas :-)
LouP
PS. I'm loving this so much, I ran out and bought Leap Motion and throwing switches in the cockpit with my hands now. Only issue is that I hit the throttle by mistake once in a while, but I'm still becoming acquainted with it.