you're problem is that you are trying to connect an ANALOG camera to a NVR system, they are not compatible. you need to return the HD Analog camera and purchase an IP network camera
like ebay item# 292900457081
this system is NOT 1080p just by looking at the link you provided it tells you that this is 720p resolution system, thats why it looks like that. when you log in try to set it up to MAIN STREAM that should make the image a bit better
you need to focus on the lens remember the lower the lens MM the wider the view gets usually for 2.8MM will do that will give you approximate 120 degree field of view ( give or take )