Strange ghosting in PowerDVD and Nero ShowTime

I recently bought a new LCD monitor - LG 204WT for the claims that ghosting has been virtually eliminated by its 2ms response time.

However for some reason I am getting terrible ghosting onscreen when watching DVDs on my DVD software. Now, normally I would think that the monitor was from a bad batch and ring up LG, but tried a CRT monitor and the same ghosting appears aswell.

I have installed the latest chipset/video/sound card drivers but the ghosting remains when viewing DVDs. Can anyone help with this problem?


******PROBLEM SORTED********

And the solution was...?