PC to LCD via DVI - dodgy resolution, lines missing???

Hi all

I have a 27" LCD which can display up to 1080i, It's native resolution is 1280 x 768.

I am running my PC on it using DVI and when watching HD video clips it looks very impressive.
However, even though the image is nice and sharo, there appears to be some sort of resolution problem.

For example, if the screen was full of text, maybe one line would appear to be cut in half, but scrolling would reveal the text to be visiable and move the problem to the next line down.
It's as if the resolution is almost matched to the screen, but not quite right.

The TV tells me that it is displaying 1024 x 768. (the native res is 1280 x 768) I know you are supposed to match the screens native res as much as possible so I have powerstrip running on my PC and have used it to change my output res to 1280 x 768 however the tv still tells me it is only displaying 1024 x 768.

Liek i say, video looks fantastic, but you can not use the screen for web surfing or any other normal pc use because of this.

Any ideas????????