I don't see whats wrong here. If all the entities aren't where you want I believe somewhere in the mod you can move them back to where you want. I know for 5zig you go to 5zig settings, custom display, select the mod you want to move, click on it then selective button where it says location: custom. However you don't have 5zig so its probably different, but should be along the same lines.
In that case it may be your texture pack. Try changing it and if not i don't know what else it could be.
Look at the blocks, they're dotted and it's not from a resource pack. I think this comes from the Super Secret Settings which changes the look of Minecraft, from a TV screen to blurriness. Did you relog and check if the issue was still occuring? Edit: I think I see the issue here. You have Notch's Shader on. Here is a picture of what it looks like, and I'll throw in your image too so you can easily compare them They have the same dithering effect. Where did this come from? The Super Secret settings, of course. I assume you already did this, but quit and close Minecraft, then relog. The display will be back to normal.
