The issue, however, dates back to my time of purchase (which was the summer of 2010), and is something I never quite figured out. See, I bought this monitor after doing some research into response time. Everywhere that I read said that the lower the response time, the better.
I got it home and used it, and loved it, but there was always something off. In my hi-res games (on PS3) there was a subtle off-color effect. Like when I moved the camera quickly over a white area, there would be a lot of semi-transparent, blue/black noise over the white area (I believe this is the ghosting that fast response time actually supposed to fix). This was when I ran my monitor at 2ms response time. Well, I changed that to 5ms, and the weird effect went away. No more ghosting, no more noise.
So I put this to you: does low response time degrade visual quality, rather than helping it?
Then again, I may have a broken monitor (I sure hope not). Let me know what you think.
As stated over aggressive RTC can cause overshoot which is what you are experiencing. Most monitors use some level of RTC to "achieve" advertised response times.
Response times are based one hand picked numbers from color tone change test results. The fastest record time is used for the advertised response time even if it has response times as slow as 250ms for some color tone changes.
Great explanation, no wonder when I was setting my response time on my BX2450 to faster/fastest it had that weird effect. It was pretty trippy on fastest though when I was adjusting it while playing GTAIV. Everything had this green/blue hazy look when the affect would apply.