Problem with Dell W2606C 26" LCD Display

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I've had this for several months now and have been using it as a TV, but one thing that irks me every time I notice it is that the picture is horrible.

Whenever there is a dark scene in whatever I'm watching, you can barely make out anything, and even in the brighter scenes, whenever a shadow is cast over something it just looks like a blur. It's as if there is not enough ambient light. Any dark-colored objects on screen also look very burry. It's the same for DVDs and games, and it's very frustrating. A 26" LCD display should not be looking this crappy.

I try to turn the brightness and contrast up, but then it becomes too bright and darker spots still look rough. I've looked through the manual and the menu for any visual options, but found nothing. I was thinking maybe it's the type of connection I have, but I don't know for sure.

This was a gift, and I don't watch it much, but I think it's time I do something about this now. Any help?
 
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