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Go to Control Panel\All Control Panel Items\Display\Screen Resolution\Monitor tab and make sure it is set to 32 bit color. Your snip appears to be a 16 bit dosplay.
Color Bit Depth - Display Settings
Last edited by Brink; 19 Jan 2012 at 01:19. Reason: added link for more information
Thanks Britton30,
although the color was not in 16 bit changing the screen resolution then changing it back has appeared to fix the color issue. I blame battlefield 3 for goofing with the resolution.