if everything else displays perfectly fine (the desktop, wallpaper, etc) and it only affects photos....and if they visually change from crazy colors to normal upon resize i wouldn't think that there is an issue with the monitor. you can run a monitor calibration test on it to be sure.
i've never heard of the problem you have but it sounds like it is software based somehow. are you using the latest and greatest drivers for your card?
a few tests will help you better determine what the culprit may be:
-test the monitor on another computer or with a different source other than your pc
-test another monitor (one that displays normally) with your pc to see if you have the same issues
-test on the second display port on your video card if it has one. do you notice the same issues?
-upgrade to the latest drivers, do you notice any improvements?
-set the monitor (hardware) and computer (software) display settings to default. any change? are you using the native resolution of your monitor?
Ok, i tested some things and it seems the problem isnt with my monitor, its from Windows Photo Viewer. All other programs display things correctly. I have uploaded my desktop, does this look ok to you?
a few off-topic comments first..
-wow that is alot of icons. it makes my eyes go buggy just looking at them all.
-pretty nifty wallpaper, what is it/where did you get it from?
-thats quite alot of taskbar icons (lower right) you know you can hide them right?
relevant comments now..
-the desktop photo looks fine on my end. however, a screenshot taken from your computer would not show me what it appears like on your screen (or take into account your settings). only a photograph from an external camera would show what it appears like on your screen.
- you could try some websites such as the ones in this list http://www.google.com/search?hl=en&source=hp&q=monitor+...
- or you could use the integrated calibration software found in your ati (catalyst) or nvidia (nview) software driver package.
- i've never heard of the default windows picture and fax viewer (this is the one you used?) acting strange like that. the images should all be wysiwyg no matter the program used to view them. did it ever act up before? did you change a program/hardware and cause this issue?
what i normally do is set the software side to default and adjust the hardware side (the buttons on the actual monitor) to adjust things when i do my calibrations. if the software is always at default you dont get the annoying flickering when you start the computer up (when it turns on the software-based settings)
ultimately there are a few different ways of calibrating your monitor and any of them work in their own special way. i prefer my hardware way but some might change settings often enough to warrant the software way and the setting profiles that it offers. its all up to what you like and what you dont like.
by hardware i meant in your computer such as a video card, not your monitor.