A way to make the text not so fuzzy is to rasterise the text layer. Before rotating it, there are several ways to do this.
- If you have a higher version of Elements (not sure if it has this, but maybe it does), right click the text layer and click "Rasterize Layer".
- If the "Rasterize Layer" option isn't there, go to Layer >> Rasterize >> Type.
- If that option isn't there (which I doubt), try applying any filter over the text. Before the filter applies, it will ask you if you want to rasterise your layer. Click yes, then click cancel or set your filter to zero.
After rasterising it, it shouldn't become so blurry when rotating it. Oh yeah, before rasterising, make sure that the text is exactly what you want it to be- you won't be able to change it afterwards cause it turns into a normal layer.
Also, there are various ways of rotating an object. You can either try the method Kim mentioned above, or just hit Ctrl+T to access Free Transform, then move your mouse to a corner until it turns into a two-way curved arrow and drag.