I've had a T220HD samsung monitor which is 1680x1050 claiming to be 1080 full HD for awhile but I am extremely disappointed in the quality for ps3 gaming. Everything is all jagged and messed up. So now I'm thinking of buying the T240HD which is the same but 1920x1200, but I don't want to do it before making sure it's going to look right. From what I understand, the pixels wouldn't be squished so it should look good and have black bars at the top and bottom right?
Yes you're thinking should be correct BUT you will will have to be in "native' mode and remember that you will not get a 1080 picture unless you use an HDMI cable with the PS3. I'm not sure if its the 360 or the PS3 that actually needs to be put into 1080 mode; i *think* thats the 360 thou and the ps3 does it automatically with the hdmi cable.
Have you tried native mode on the 220HD? it should render nicer but you'll have parts of the image you wont be shown since the native resolution is only 1680x1050.