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MSI 580GTX Twin Frozr giving weird display problems

Last response: in Graphics & Displays

I've recently bought a new monitor, Asus ML239H and for the first 2-3 days it worked fine. However, lately I've been getting this weird problem where on startup, my screen looks like the following photo.

On the login screen, when I restart the computer, it reverts back to normal and displays in the native 1080p resolution and without those white bars. I tried logging in while I was having the problem and under Nvidia 580GTX properties, the following message was seen under status : "Windows has stopped this device because it has reported problems (Code 43)" As per following photo.

My system was built just 3 months ago, so the gfx card is not that old.

My system specs are as follows :
OS : Windows 7 64bit
Asus ML239H Monitor connecting to my video card via DVI-HDMI cable
Mobo : Asus Maximus IV gene-Z running 0902 Bios
Intel 2500K not OC
MSI 580GTX Twin Frozr (Not OC other than factory OC) using Nvidia's latest driver
4x4Gb Gskill 1600MHz CL9
CM Silent 700W PSU

I've tried the following in roughly the order listed below :

1)Tighten the connections, made sure it wasn't loose
2) Tried a different DVI port on my video card (has 2 DVI ports)
3) Tried the monitor with my laptop (it works fine with my laptop, HDMI-HDMI)
4) Tried updating my Nvidia drivers to the latest (from 285.xx to 294.xx)
5) Tried with my friend's monitor (DVI-DVI connection) and still the same problem
6) Changed the PCIE lane for my video card. (From first PCIE lane on mobo to second)
7) Tried uninstalling all nvidia drivers PLUS used driver sweeper to clear any remaining nvidia drivers and deleted all nvidia folders before reinstalling latest nvidia drivers.

Any help would be greatly appreciated.
a b U Graphics card

Yep, Also the newest driver is 295.73. Just do me a favor and go back and check to make sure it is at that driver. If so then yes your card is obviously defective. The funny thing is by the time you will get your card back NVIDIA's kepler is gonna be out.
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a c 212 U Graphics card

I'd also suggest running OCCT's GPU test and monitoring voltages. PSU issues, MoBo or GFX card voltage regulation may be off and this test would pinpoint that .... The ATX standard allows 5% voltage variation but I find your OC can be affected by voltage stability when it varies 2% or less.

So I went to RMA the card and they did some checks on the card and said the card was fine... They gave me another card anyway, but does that mean that some other part is causing the fault?