Definately looks like a refresh rate issue. In the display properties under the monitor tab, have you unchecked the box that says "hide modes this monitor cannot display"? Usually unchecking that reveals some more options.
From the way it rolls though, looks like it's a few hertz off. Don't think it's running at a 59hz frequency do you? Or interlaced maybe?
Just curious though...have you tried to see if it might be caused by grounding or interference? I had lines similar to that on my 7" lilliput (they didn't roll like that though) that I resolved by grounding.