Video playback distortion

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I just bought a 22" LCD whose native resolution is 1680x1050 and hooks up to my computer via DVI. My video card is a Gigabyte Geforce 6600 GT. The image looks perfectly fine, except for when it plays videos (movie files, DVDs, etc). There's a strange high frequency wave-like distortion for the video itself, but everything else remains unaffected. When I change the resolution to anything below 1600x1200, use the VGA port, use Linux, or plug the monitor into another computer (was running OS X), the problem goes away. Changing drivers or video players does not affect the problem. I think the problem lies with Direct Draw or my video card. When I turn off hardware acceleration on Direct Draw, the problem also goes away, but my video frame rate drops, so that's not an acceptable solution. Anyone have an idea of what I can do? I've attached my dxdiag output which contains info on my PC.
 
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