Have you tried this monitor with different video cards or consoles? Have you tried different games? Those lines look like a signal anomaly. Are they there when you use the composite or s-video inputs? There may be nothing wrong with your monitor.
Additionally, the overscan should be turned on in normal circumstances. Shrinking the raster to fit within the viewable area is for production work. It could introduce glitches in the video for things that aren't designed to be played like that. If you turn overscan ON, and shrink the video back to fit the screen, does it still show the lines?
Otherwise, that looks like there might be something wrong with the video processor. Not easy to fix.