LCD issue (Works on boot, but dies in windows)

I just bought a BenQ FP29W 19" widescreen monitor with a native resolution of 1440x900.

This is the first LCD monitor I have purchased in my life so bear with me
When I plugged it in, I used the DVI input and this still happens; It boots up to the windows loading screen just fine, then stops working and goes into powersave mode and displays a NO SIGNAL message.
I can turn the resolution down and it works, looks like crap, but works. As soon as it goes back up the screen looks like it had been cut into hundreds of little squares then smeared across the screen on an angle.

The D-SUB works perfectly fine, but I can see slight distortions on text and other various things that piss me off.

I tried troubleshooting it myself; I wasnt aware of there being drivers for the monitor so I downloaded and installed them. In the device manager it shows the display as Analog; Even when I switch to the DVI at a lower resolution. Shouldnt it say DVI or Digital?...

Latest DX, Vid drivers and now monitor drivers; I'm stumped!
I'm going to go home and try:
1) Different DVI cable
2) 2 other PC's

Is that the best I can do before I have to return it? And what could possibly be doing this if there is nothing wrong with the monitor?

9800 Pro 128MB. I just double checked to make sure, and it does.

That's what I thought.
Oh well, cable and other videocard tests when I get home.
Good thing I get off at 2pm every day, saves me rushhour traffic