I tried it with the live/installation CD for 10.4 again. The effect
appears as well. I fiddled around with the monitors.

What helped was switching to same image in all monitors (the effect
vanished) and back again (and did not reappear).

-- 
VGA screen sometimes is croped and has dithering DVI Screen is always normal 
ATI x800
https://bugs.launchpad.net/bugs/579028
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