@Marc31:
I did a bit of research before posting this thread and the internet recommended that I do exactly what you just said. Didn't fix it.
As for the texture in photoshop, here's a screengrab of the texture zoomed in to the area shown on the model. As you can see, there's no blurring present.
@Mik2121:
When you say it will make everything look pixelated, do you mean the texture or the outline of the model? I'm actually interested in going for a pixelated look for the texture, so how would I go about changing my texture filtering?