Do you have the same problem when it is set to a native resolution 1024x768 at 70 . If so i would suspect that there is a problem with your vga card(ouch). Because im using asus 3650 silent and set to the same settings with a 37 lg as you have shown check diplay options and make sure 3d refresh overide is disabled. I have tried recreate the same problem that your having but i cant seem to.
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