Im running the first 2.3.3 leak and trying to review CM7 on my Optimus V but it seems the Optimus V has clearer more focused recording which is entirely ridiculous..... Any ideas or thoughts?
what do you mean by "clearer more focused"? I can't speak on the Optimus V but oftentimes to an untrained eye a technically better image may appear worse in comparison to a technically worse image.
Now, since it's all opinion anyway, the "technically worse" image which looks better to you, may as well be better... but that's a different story.
A common issue with "unfocused" photos/video is a smudgy lens. I have a microfiber cloth I use to clean mine, they're about $5 at a camera shop and cheaper versions also come for free with many electronics these days (especially with things like screen protectors, but my netbook had one and I think my X may have had one as well).
One more note, it's a lot easier to get good pictures with a 3.2MP camera than with an 8MP camera. The photosites are bigger and if everything else were equal you'd get much less noise which can produce sharper images.