Very jittery screen on some games (Hd 5770)

Please help me figure out what is wrong

I have a 5770 installed and I am running all of my games at max settings at 1680 x 1050 (samsung syncmaster 2220)

My pc is:

i5 750
Gigabyte p55 ud3
2x2 ddr3 1600
saphire hd 5770


The problem I am having is that with certain games (first person shooters) where the mouse is used for turning. I have very very shaky jittery screen. I am also getting a weird rippling effect on the screen. The two games I tried it on were borderlands and bioshock 2. Fraps says my FPS are between 45-62. When I play Dragon age origins which is not controlled by the mouse everything is fine (runs 45-60fps). Sims 3 also seems fine runs 74-125fps (but it also has the ripple effect). I have used driver sweeper and reinstalled the latest version of the drivers from ATI website.

My mouse is a Microsoft 5000 series wireless mouse (1000dpi).
My monitor is a samsung syncmaster 2220wm (1680x1050)

Could it be my mouse or my monitor....or is it a bad card. Its only a week old so I can RMA it. If you have any theories please let me know. Or even better if you know what the problem is let me know.