That sounds like ClearType. Do you have it enabled? If so, disable it. ClearType takes advantage of subpixels to make letters sharper on LCD monitors, but some people are annoyed by the colors.
If it's not ClearType, then I have no idea what it is because I have never seen or heard of this problem on any LCD monitor.
As for the sharpness control, that's just digital sharpening, which can be useful when using lower resolutions. Just set it to the lowest value that isn't blurry and don't worry about it.
You're crazy. Have you seen any of the newer Samsung monitors? They're awful. The Samsung 191T was my first LCD monitor, and I was generally satisfied with it, but I'm not happy with any of the current Samsung monitors. The colors are washed out and they lag, and the viewing angles are not good enough for large screens.
I have ClearType enabled and I have not this problem, use the monitor whit another computer or different cable.