This has probably been resolved by now but just incase here is what's happening. All the cvi cameras are all now 4MP. If you have bought a 2MP camera it's a 4MP camera that has been changed to 2MP in the camera settings.
When you are in the PTZ settings if you double click it defaults the camera back to 4MP. If you only have a 2MP DVR you will get pictures like in the post.
To resolve it you need either a 4MP test monitor or a 4MP DVR. To prevent it when you leave the PTZ menu click no if it's asking you to accept changes.