How to make these clouds look less horrible?

See image below for this scene im working on:


I have a big problem with the clouds in this scene, initially I wanted volumne clouds, but at close distances, under any settings, the clouds near the camera became all blurry like the camera was falling/rising fast, and the edges of clouds would be all light like cartoon clouds. Transparency resulted in patches of clouds behind clouds, making everything look cheap, and terrible. So i finally went with solid clouds, except, look at the horizon. For no reason i can pinpoint, the very far clouds are very visible and very light.

Can anyone tell why? I have attached the scene below, If anyone can find out why the clouds are so light out there, and how to fix it, I would be greatful, and any further tips on how to make these minecrafty clouds look even better would certainly be welcome (although im going to stop short of mass smoke simulation).

File download from here: http://goo.gl/o437r4
(Is rar because is big)