Resolution/black border issues with new LG M2762d 27"

Hello folks, I'm hoping for some help or feedback on said topic.

I received this monitor/tv hybrid last week, from the start it was great. Plugged it in and it ran smooth, even hooked my DVR up to it. It's native resolution settings are 1920x1080, and that is what I run it in. I'm an avid gamer so as most gamers know not all games play in the same resolution as the native monitor settings.

So, I played games on it fine, watched netflix it was fine, even watched TV and it was fine... up until yesterday when I played the Torchlight demo(it doesn't have a windowed mode, nor did it have 1920x1080 available). I made adjustments to the game so it looked the way I liked and played the game for about an hour.

After playing the game I watched a movie on Netflix, and at the time I hadn't noticed anything out of place and it wasn't until later after trying to minimize my web browser I noticed the top 1/4" or so was no longer visible(in other words the option to X-out/minimize/maximize on the browser were off the screen). Then I noticed a 1/4" black border at the bottom of the screen. So the entire picture moved up about 1/4" therefore hiding the top of any program I maximized.

First I had a look at my resolution settings. It was set in it's native 1920x1080 and the Hz were at 60 which is also native to it. I messed around and the issue replicated in similar ways which each different resolution and Hz selection. I then tried restarting my pc and got the same result, then I unplugged and re-plugged the D-sub cable, and still had the same result. I even tried a system restore to a previous time before I had played the game and that didn't help(all it actually did was make my pc act as though I had no A/V enabled yet Avast was enabled and I even updated but that's a whole other story). The last thing I tried was to adjust my ATI Catalyst settings, including increasing/decreasing the Hz and resolutions and of course had the same results.

So, I researched for a few hours but the most I could come up with was switching to a DVI cable rather than the regular D-sub cable that came with it, that that didn't really persuade me to believe that would solve my issue. I haven't had the time to pick up a DVI cable yet but I plan on doing so as soon as I can but that may not be until friday afternoon.

Anyways, my question is; Will the DVI cable fix my resolution/border problem? Is there any other solution or troubleshoot I could try to maybe fix this issue? Sorry for the long post but any help would be greatly appreciated, and I thank you in advance.

Edit: I also forgot to mention there are different modes and this issue only exists in PC mode. It does not effect TV mode.