smoothing not working when ATI driver installed. HELP ME PLEASE!

[OVS]

I need help. I AM GOING INSANE!
Anyway, here is my problem.

If I install any kind of ATI driver(catalyst 4.9 and earlier versions)
or variations (Omega), smoothing on my monitor fails to work.
What I mean is that if I change the resolution of my TFT to one that
isn't its native resolution the text looks messed up.

Now, when I uninstall all instances of the ATI driver the smoothing
process works brilliantly and I'm able to use the monitor fine on
non-native resolutions.

I've been playing around with settings, installing new drivers for days
now, and its driving me MAD! What else can I do?

One thing I notice which might be a problem (when the ATI drivers are
installed)is that when I go into 'settings' of 'Display Properties' The
second monitor option is there and is stated as default monitor. I feel
if I somehow remove the second monitor(I use a single monitor and do not
have any other connected) this might solve the problem.

My hardware is

MSI K8N Neo Motherboard
Sapphire 9800 Pro
Iiyama E431S TFT

Please someone, anyone, help me. Honestly you will save me from this
slippery road of INSANITY!

 

[RonK]

Do you have the monitor connected to the Blue connection on the video card ?

 

[OVS]

Do you have the monitor connected to the Blue connection on the video card ?

I have it connected on the white connection(DVI), but have also tried the
blue analogue connection.

Thanks

 

[RonK]

If you connect using the dvi connection it is normal to have it show as the
default monitor. You do not have to disable the other.

The best setting for lcd is 1280 x 1024.

What is the refresh rate set at for the monitor ?