it shouldn't be faulty, reset your monitor, delete the new ICC profile, and reset your GPU driver settings. You said it was ok before the calibration, then it should revert to that state. just look on TFTCentral for calibration settings on your monitor and try to apply those, see how it works...
i think u're talking about ''Soap opera effect'', on LG is called ''True Motion'' and u can easily disable it form settings. it's only good for watching sports, like F1 where speed is important.