So for anyone trying to play in 4k or any high resolution for that matter don't use the virtual fullscreen option like I did thinking that's what your supposed to do. Go to user/username/documents/sega/phantasystaronline2_na and locate the user.pso2 file. In this file you will find resolution settings that can be changed and saved. I changed all values to 3840x2160 and now my game is absolutely gorgeous. I spent hours trying to figure out why my game was so pixelated no matter what options i fiddled with. Here ya go. Don't forget to set fullscreen option to true.