Are you referring to your background image being too big? If so, it might have something to do with the way you set your wallpaper. Try allowing to "stretch" to fill in the whole screen instead of focusing on the center.
If your concern isn't with your wallpaper, then whatever is wrong isn't seen on your screen shot.
If its the artifacts, it could probably be a faulty monitor. He took this by photograph so, naturally, the defects would show. It's also possible that the wallpaper was actually made that way since most of the artifacts do not go over the Steam window you have open.
If the artifacts are not on the wallpaper itself, try checking your GPU-Monitor connection if it is loose.
It was the artifacts, I wasn't sure what to call them.
My specs are
CPU: i7 4.0
GPU: MSI twin frozr gtx 275
RAM: 4GB Mushkin DDR3 1600
I think it's the GPU, but I wasn't sure. My pc will freeze in game, and only in game for just about every game, then if I don't BSOD, I ctrl alt del into task manager and it will keep playing(driver recovery maybe), but after 2nd time, the artifacts start to appear. I'm looking to fix it, I just need to know what causes it.
I'm running at factory settings, which are OCed out of the box, to fix the problem, I even took apart the card and replaced the thermal paste. It especially happens in COD4, and WaW
1) Reduce the core/mem clock speeds on GPU by roughly 50% (or what ever your software will let you do).
Check for stability in and out of gaming.
If it now works fine, RMA the GPU.
2) If not, bring the CPU back to stock.
Test again for stability.
If stable, return to the GPU to stock, if not proceed to step 2.
Test with GPU at stock.
If still stable, lower your CPU overclock.
3) If not, lower your RAM speeds and/or increase the timings.
Test again for stability.
If stable, overclock the CPU again.
If still stable, try overclocking the GPU again.
If it is still stable, RMA the RAM.
If this does not point you in the correct direction, ask a friend if you can swap GPU's for testing.
If your system is stable with his GPU and his system is not stable with yours, RMA the GPU.
If his system is stable with your GPU, suspect the PSU.
If you would still like further assistance, please post the brand, model and wattage of your PSU along with idle and load GPU temps.
How old is the system? You say it was "factory" OC. Send the pic. to the maker of the system and tell them to fix or replace. If you have a warranty, use it. You paid for it in the price. Don't be shy when dealing with people who sell you things that are supposed to work. Be sure that your warranty is not voided by you resetting the bios or other parameters yourself.