Samsung SyncMaster 25.5" Widescreen LCD Monitor (T260) woes

Newb here. This looks like a busy forum!!!
Anyway, I just purchased this monitor.
SPECS Are:
25.5" widescreen display
High 1920 x 1200 resolution
20,000:1 dynamic contrast ratio
300cd/m2 brightness
5ms response time
HDMI and DVI connectivity
Low power consumption

1080P from HTPC via HDMI(ATI HD4850) or
1080P from Blu-ray player via HDMI
Looks like crap!!!
My Projector at 1080i via either of the two sources look better than this.
Is the 1080p just a number and not possible to view on 25.5 from about 3 feet away?
THX Folks!
:banghead:

Have you tried any other sources? DVD player HD TV/Movies from the Web?

Try Hulu.com and see if it's any different.

I tried using my LG Blu-Ray/HD DVD internal on the HTPC and same same.
it looks grainy!! Regular DVD's look almost the same. :(
weird...