Fuzzy/static/grainy screen while 3d gaming

My first guess would be that you have the sharpness set too high. Try calibrating it with this page:
http://www.lagom.nl/lcd-test/sharpness.php

Thanks, ill try that when I get home.

Sorry if this is a stupid question but it says thats LCD and my monitor is LED will it work on my monitor?

An LED monitor is an LCD monitor with an LED backlight, and all the tests at that website can technically be applied to other screen types, including CRT, plasma, and OLED (though the part about native resolution wouldn't apply to a CRT).

Hey, I tried calibrating with that link you gave me. I tried my best to get the picture to look like what it's suppose to look like.
Also my monitor has a brightness scale not gamma not sure if they're different.

Also I still notice the fuzzyness in my games. It doesn't look like it's blurry but more static.

Gamma is quite different from brightness, and normally set on the PC side in the video card settings (Catalyst Control Center for ATI/AMD cards). I was talking about calibrating the sharpness setting in the menu. You might need to turn off some of the "magic" settings to be able to change it. However, I'm not sure what you mean by static here. Is it like the temporal dithering image at the bottom of Lagom's Black level page? If not, do you have a way to record video of it so I can understand what you're talking about?

There is a sharpness setting on my monitor(didn't adjust it in catalyst control center) and it was already set on the best possible setting. The picture on lagom's page where it shows what it should look like wasn't possible on my monitor(I think) so I just chose the best possible option.

The static problem I'm having is hard to describe, it's kind of like a bad quality picture on a TV when there is a storm outside.
It's kind of like a fuzzy/snowy type of picture but not as noticeable from far away, really when you look close. It bothers me alot and it makes the quality of the picture look bad. I tried to record a video but it wasn't really noticeable on a camera.

I don't know if this helped but i'll try to find a way so you can see what i'm talking about.

Edit: It's kind of like flickering SMALL dots

That sounds like the temporal dithering, which the monitor does because as a TN panel, it only supports 6 bits per color channel internally, and has to simulate the in-between colors. I presume you already made sure the system is set to 32-bit color, not just 16-bit. To get warranty support, I think you'd probably have to send a video that proves it's doing an extra-bad job of that. Otherwise, I can basically think of two options for you:
1. Play around with all the monitor settings, and see if you find some that make the flickering less obvious (sorry, no idea which settings would do this)
2. Replace the monitor with a true 8-bit monitor, which requires a VA panel or IPS (avoid cPVA and e-IPS, those have 6 bits per color channel like TN).

I'm not sure what you mean by dithering.
Is this what you mean http://www.youtube.com/watch?v=X6Xr9v-FfHY or http://www.youtube.com/watch?v=TE8WTgMKVMk because that's not what my really what my monitor is doing and is not as noticeable

Yes my monitor is on true-color 32-bit color. Also how much would a true 8-bit monitor cost?

Here's one for about $375:
http://www.costcaptain.com/mm5/merchant.mvc?Screen=PROD...
However, I forgot to suggest that first you should make sure it's really the monitor causing this, rather than the cable or video card (even if the video card isn't overheating, there could be other problems with it).

How do I tell if a monitor is 1080p cause I don't think my monitor is 1080p so the quality looks bad.

I was playing minecraft and I noticed the "fuzz". I was researching about people saying that their quality was "grainy" I didn't know what that mean but some people described it like my problem. Where it was kinda of wavy/blurry as if someone put butter on my screen.

I'll leave a pic/video tomorrow to see if we can fix it  

http://img109.imageshack.us/img109/7871/1001176ox.jpg
Here is what it looks like, I have a few more pictures if it's not noticeable.