Samsung XL2370 LED Resolution Problems

Hi, I did a search and could not find an answer to my question.
I Just got a Samsung XL2370 LED 23" Monitor. After setting everything up and updating drivers, I set it and my Catalyst to 1920x1080p.

I have it hooked up with an HDMI cable I use for my PS3.

All the text suddenly went really fuzzy and for the most part everything doesn't really look as it should (games look great though).

When I change it to any other setting, like the next down 1776x1000 it looks even worse.

Once I change it on the Monitor menu from 16:9 to screen fit the 1776x1000 looks amazing, but it looses about 1.2 inches of space from either side horizontally and about .8th of an inch vertically from either size....and I can't seem to get it to go and take up the entire screen space.

Does that make any sense? Oh the 1080p resolution doesn't take up the entire screen either...

Help please.

I have a Vista with 3g ram, quad core and a 1GB ATI 5770 Overclocked video card.

Thank you very much.