I am noticing that the anti aliasing is not only problem with the blurring. It seems like the widget itself lowers its own resolution making text look very blocky. At first I thought maybe the problem was that I need to make the widget larger.
But it seems like no matter what I do the widget becomes very blocky and low res. I can live with the anti aliasing and such but there just does not seem to be a way to get a crisp hud widget without setting it to screen space.