People I have a theory:
Maybe the 2x07 Monitors could be fixed with a new LCD bios?
Looking in the Dell knowledge base, I found an article that refers to a Sharp LCD that has the exact banding that me and everyone that has posted here has experienced.
Here is a bit from the article:
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Color banding can be seen on the Inspiron 8200 with the ATI 9000 and Sharp ASV LCD panel
1. A vbios has been released that corrects the color banding problem.
Color banding can be seen on the Inspiron 8200 with the ATI 9000 video card and Sharp ASV LCD panel
On Inspiron 8200 systems that have the ATI 9000 video card and the Sharp ASV UXGA LCD panel, the screen may have color bands visible on the desktop bitmap or other system graphics. The screen looks as if it is in 16bit color but it is actually in 32 bit color. This is a cosmetic issue and if connected to an external monitor the image will look normal.
A video BIOS update has been released that corrects the color banding seen on Sharp "UltraSharp" UXGA LCD panels. The video BIOS update is availabe from the Dell support web site at:
http://support.dell.com.
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Obviously it is not the same video card and monitor but as we have seen it is definitely an electronics problem. Maybe flashing the monitor via DVI or USB with a new bios will fix the problem.
Now if only Dell could acknowledge the problem fully in the first place...