Yes there is definately something wrong with the monitor but I don't believe it's simply a matter of 16bit vs 24bit in this case. I think the monitor is showing full 24bit colour (or very, very close to) even via DVI - however banding is very clear under certain circumstances.
Have a look at these two examples -
1.
http://www.deviantart.com/view/6248662/
Banding can clearly be seen in the sky - bad. This is not because of the rendering of the image itself but how the 2007wfp displays it. On another lcd and crt I have here there is no banding.
2.
24bit image - http://privatewww.essex.ac.uk/~sjs/research/rgb_net.png
32bit image - http://privatewww.essex.ac.uk/~sjs/research/rgb_net_alpha.png
This colour cube is displayed well by the 2007wfp - no banding at all even via DVI. If the screen wasn't showing close to 24bit or 24bit colour then wouldn't these colour cubes show banding?
Have a look at these two examples -
1.
http://www.deviantart.com/view/6248662/
Banding can clearly be seen in the sky - bad. This is not because of the rendering of the image itself but how the 2007wfp displays it. On another lcd and crt I have here there is no banding.
2.
24bit image - http://privatewww.essex.ac.uk/~sjs/research/rgb_net.png
32bit image - http://privatewww.essex.ac.uk/~sjs/research/rgb_net_alpha.png
This colour cube is displayed well by the 2007wfp - no banding at all even via DVI. If the screen wasn't showing close to 24bit or 24bit colour then wouldn't these colour cubes show banding?