goates,
You are quite right about the LCD having response rate rather than refresh rate, I just couldn't remember the term when posting.
I also admit that my experience of this phenomenon is mainly with older LCD displays - I simply haven't used a "new" LCD screen for games (work, work, work

). I certainly remember FS looking quite blurry on an LCD screen, while pin-sharp on the CRT. However, that was a while ago!