Poor External Display Resolution

I just purchased a LG W2753V-PF to be attached to my MBP C2D 2.5ghz 4g ram running OS X.6.3 v1.1

After attaching it via dvi to hdmi, the resolution is poor, text is pixelated and image quality is def. not 1080p HD

I have font smoothing on and even adjusted smoothing in terminal, resolution is set to 1080p at 60hz

Anybody have some tips on how to get the resolution to look picture perfect?

I am using the external as main screen, not mirroring.

Hope to hear from somebody, this is driving me crazy!

***SCREEN SHOT ATTACHED OF CABLE, RESOLUTION, TERMINAL

Try scrolling down in that list and select 1920x1080 directly, not just 1080p.

The 1080p setting is specifically designed for TVs, not monitors (as indicated by the icon). I know there shouldn't be a difference between a 27" TV or a 27" monitor running at the same resolution, but it might be doing something funky...

Try it anyway...
Alternatively try using DVI to DVI instead of DVI to HDMI.