Are those lines missing from the image?
Wow, I don't get anything that bad, but I have noticed that I'm getting some D3D issues with what I believe to be some sort of interlacing across the horizontal. It only happens with Video though.
I am getting something similar on a computer using a 7600 card. I think I have tracked it down to a conflict with java.
I did get a huge improvement using the Nvidia third party installation. Software Releases - NGOHQ.com
Hmm, though I'm pretty sure I haven't installed java on that PC. I'll give those drivers to see if that fixes it.
@Kyle: No, it's like there are black bars pushing the image apart in certain parts, not covering it. This also happens in the following scenarios: YouTube video maximized, screen saver other than the default, Windows Media Player's Alchemy>Random visualization, and Windows Live Photo Gallery.
It does NOT happen on a normal sized YouTube video though, the WMP visualizations in Windows Media Center, Half Life 2 Episode 1 (A DX9 game) or Frets on Fire (an OpenGL/Python game). I also have Windows XP on the machine, which doesn't have the articulating issues as well.
Edit @davehc yey! Your suggestion worked, I installed those drivers and no more problems. +rep to you.