What model of video card is it (e.g. Radeon X1600, Geforce 7900 XTX)? The setup is decent, and I doubt the monitor is to blame. If otherwise, run your level again with the "-diag" command line (without the quotes) and post the log.
"You level up the fastest and easiest if you do things at your own level and no higher or lower" - useful tip
My 2D game - release on Jun 13th; My tutorials
