WhiteKnight,
Get a lint-free cloth (the kind that you should use to clean your LCD), put it over your index finger, and use then lightly massage the area with the dead pixel for a little while. Most times this will actually activate the dead pixel and solve your problem. Once the pixel is working, it will rarely, if ever, stop working...
Eman1,
Did you try all of the ClearType tuning settings? I personally had to try all of them. I found that there was only one ClearType setting that got rid of the bleeding effect, all of the others did nothing, or made the situation worse.
I haven't noticed any pixelization or non-true looking photo's/images at all...