I have this issue i am facing where i see horizontal lines in every game while playing, i tried to fraps it but it does not record it so it looks normal, it kind of bothers me, i thought it would be a problem because of the old monitor but it also happens with my 24 inch Acer G245Habid Olympic Edition monitor, i had this issue with a GeForce 6 series card and another old ATI card (I think it was something with 8900 or a 9800 bought in 2003), the most times i see these kind of lines are on old games (CS, HL, Knight OnLine) and also with games when i set max AA (8x AA RE 5, CoD series), friends told me it could be vsync but it is always off but no luck. Also when i am watching 720p clips with Media Player Classic, when a person isn't moving it is good quality but if the person moves i see these little cubes next to each other. Both issues happen with youtube clips also and i guess with everything. I have the 10.2 drivers installed but i did not try other drivers which i doubt it will help fix these issues i am having.
use vsync on.. and the boxex you are telling me about when playing video clips tells me that its a codec problem.
could be an artifacting graphics card? or more the still, perhaps a monitor on the way out? its a shame you cant take a picture with a camera and upload it. but as already pointed out by Steppis, try vsync on all games and try reinstalling the same codecs or different ones. watching the 720p content, i presume you are using the MPC setup with the graphics support? i dont understand why utube videos would do it, other than suggesting that the graphics card is playing up. have you got any other cards to test on your system?
I do not have any other graphic card to test but i think vsync on or off wont make a difference i think but i'll select always on and i doubt that there is a problem with the monitor it is 1 week old as of today. I doubt that this is a hardware problem, it happened on my old 2 cards also 1 ATI & 1 NVIDIA
I can even notice those horizontal lines i get in games while i am on desktop, when i am minimizing my firefox browser for one.
Also i noticed something different when there is something in red in 720p or youtube clips basically in every video, i tried to take a ss and i think you can notice it, the little squares around the letters in red, compare the blue with the red:
uninstall yor video drivers completely. run driversweeper and remove all the ati and nvidia files related to video. reboot. try a fresh install of the ati drivers.