Well everything fits, and it's readable when you print it out. It just wont be as clear as some later ones will be.
The print out shouldn't be blurry if done right. I've found if the font size is smaller than 8 or 9 pt then it may have some readability issues when printed. The resolution of your image might be a little small though. My Covers are about 3000x2000 pixels in size. It would definitely will be a good idea to up the resolution on your inserts. Also, I'd go with jpg and not png as a save format. My huge covers are only about 1mb in size and that is when i keep the compression very low (or if in photoshop, the high quality setting). Png on the other hand would be about 6mb at the same resolution. PNG is better suited for web images and not compression. It has its place, just not in hi res photos.
Here's a good guide on resolution recommendations I snagged off the internet:
1704 x 2272 resolution = 5.7 x 7.6 print size
1944 x 2592 resolution = 6.5 x 8.6 print size
2304 x 3072 resolution = 7.7 x 10.2 print size
As long as you keep your resolution high enough, it should suit everyone. Keep it too low and your printer has to do the work of enlarging the size (which is never a good thing).
Oh.. and its a good idea to have your images at 300 dpi for best printing results.