Nikon 77mm Circular Polarizer Question. I feel stupid asking...

Ok so i have to admit I have never used a polarizer before. We now live in beautiful Charleston SC though and with all the water, blue skies and white clouds I wanted to get one to try and see if I liked the results. I purchased a Nikon 77mm circular polarizer for our 70-200 2.8 VR and 80-200 2.8 AFS and I am obviously too dumb to figure it out. I screw it on, twist the barrel to see that it changes the polarization a bit and take the pic. The problem is nothing is sharp! Even when I am focusing the lens I can obtain focus on the subject but you can see that it is very hazy. The pics come out and look like I'm shooting in a heavy fog! Someone please tell me what I am missing here. I know it is my fault and probably really silly but I can't figure it out.