I've been observing the horizontal gray line problem some more, it seems that the faint gray lines are coming from images on the screen, sort of like shadows. If the screen is white, and there are a few words or images, the gray lines in the background appear to be extending from the images. I'm sure there is a term for this. When the object is moving on a white background, the horizontal shadows will move with it.
I've taken a pic, you can see that a shadow extends to the left of the contrast bar, and if you looks at the words below it, they do the same. http://img198.imageshack.us/img198/8650/71684965.jpg
Now I'm not really sure if what I thought was color banding is actually color banding. I took a pic but I'm not sure if anyone will notice anything off about the sky. http://img196.imageshack.us/img196/1053/44506910.jpg
Even on a completely white background I can notice it doesn't look totally white and smooth. You can't really see it in this pic, it's more apparent when a white/light background is moving http://img193.imageshack.us/img193/3307/white2e.jpg
Maybe I'm just focusing too much on the picture and most people wouldn't even notice this stuff?