Flat Screens are no match to CRT when it comes to response time, but your problem sounds to be more of a fault somewhere than anything. However, I would do the following first.
1 Check for drivers for that monitor and download latest from manufacturers website.
2. Reset graphics to default and then try to calibrate via the monitor utilities which should be included on the CD that came with the monitor.
3. Whinge accordingly to the manufacturers.
Conan