Thanks for your reply. I have now had the chance to check my monitor and cables on another computer. When connecting another computer to my monitor the red dots did not appear on the screen at all. When connecting my monitor to my pc using an HDMI cable they still appeared on the screen.
I am now thinking that this problem is something caused by an interaction between a Windows update and the intel processor, as they did not appear when I purchased the computer initially and only started appearing after I had downloaded windows 7 updates
I have also noticed that if i move the mouse over the rows of dots when they appear in a dark block centre right of the screen the red dots disappear momentarily.
Any ideas on how to fix this problem would be very much appreciated.