I recently tried to create a hillshade of a valley in the Scottish Cairngorm mountains using some Digimap 5m elevation data (specifically the OS Terrain™ 5 DTM).
The data was downloaded in .asc format and I converted this to raster using the ArcToolbox Ascii -> Raster function. Then I mosaic'd the individual tiles together and used the hillshade tool to produce this:
The view is approximately 10 miles across from left to right, should it be this fuzzy?
I'm very new to ArcMap and GIS in general.