Check out my developments at
www.blurbusters.com
So my budget is being kept low, as this is a hobby modification of a display, not a new display for commercial sale.
This is being done in my spare time, in my "BlurBusters Lab" at home.
I've also posted a thread about this in AVSFORUM:
Arduino scanning backlight for LCD to simulate "960Hz"/"1920Hz" with NO interpolation! (CRT-like motion)
It's a video-game friendly (low-lag) method of eliminating motion blur on an LCD display. After that thread was created, I started the project, of which my progress is ongoing at
www.blurbusters.com -- I even posted a link to an AnandTech article

Although, the plans have changed a little bit -- priority is now full-screen backlight strobe instead of a sequential scan of LED's (much like a turbo-charged nVidia 3D Lightboost 2, but with much shorter strobes)
That said, many of you have posted links to some very impressive motion test pattern software!
I may have to raise my budget.
I notice some of you are editors for magazines and blogs. You might want to pay attention to my blog over the coming months, because I'll be doing an impressive hobbyist display modification of an existing high-end 120Hz videogaming LCD computer monitor -- creating a zero motion blur LCD, with an MPRT of 0.5 millisecond (better than a typical CRT) via backlight flashing. Far less motion blur than all commerecially available plasmas and LCD's today on the market.
Technical info: Even though LCD panel tech already make this possible today, this is not being done by manufacturers (yet) because no manufacturer currently put 150 watts of LED per square feet (expensive) into a display -- 250 watts of LED in a 24" monitor -- needed for bright 0.5 millisecond strobes that does not make the display dim. Flashing the backlight every refresh has the CRT flicker disadvantage (not noticeable to most at 120Hz), some people still buy CRT (e.g. Sony FW900) to play FPS shooter videogames with virtually no motion blur visible to human eye. The backlight flicker can be disabled when just web browsing. I will be publishing instructions that anybody else can do to reproduce what I am doing -- this is an open-source project. I received the ultra bright LED's I'll be putting behind the LCD panel; see photos at
www.blurbusters.com, currently, I'm in motion-comparison research, and researching my best options for backlight diffusers that stay bright (fresnel-like lens sheets, translucent sheets, etc), since I need all the lumens possible in my 0.5ms strobes, to keep the picture bright, while having zero motion blur.
Edited by Mark Rejhon - 2/22/13 at 3:19pm