Looking at your post, this was at first the exact situation my wife is experiencing. She just bought a brand new 15" MacBook Pro, but last year's model. At first, her desktop looked great, then, it started to look almost like it was set to 256 colors instead of Millions, yet it IS set to millions. None of the screenshots posted here look bad on my 24" iMac. I'll have to try a screen shot of her's and send it to my iMac and see if it looks good or bad. I did create a new user, and the desktop DID look better, but not quite as good as it should. Then I log out, and log in as her, and it really is bad. And what is really strange, is that the icons for folders on the desktop look OK, but the desktop picture looks real bad, AND her mouse pointer arrow is double sized and looks pixelated, as well as the spinning beachball. Yet, repairing permissions has been done multiple times, and I have run Utes twice no, with no problem found. She did use set-up/migration to move from a G4 Powerbook to the MacBook Pro last week. But at first all looked great. Then as she was re-setting preferences to suit her needs, the display all of a sudden looked really wonky.