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Is 1280x768 the native resolution? I know I had problems with my Compaq 7020 monitor being fuzzy at anything BUT the native resolution no matter what settings I played with.
Also, I'd check each of the frequencies the monitor can display at at each resolution. At the native resolution of the Compaq (1280x1024), it could DISPLAY at both 60Hz and 75Hz, but it was MUCH clearer at 60Hz.
Mac Mini Mac OS X (10.4.8) 1.66MHz 512MB RAM
Also, I'd check each of the frequencies the monitor can display at at each resolution. At the native resolution of the Compaq (1280x1024), it could DISPLAY at both 60Hz and 75Hz, but it was MUCH clearer at 60Hz.
Mac Mini Mac OS X (10.4.8) 1.66MHz 512MB RAM