1080i / 720p Should I Be Interlaced Or Progressive? Options

[kuni]

After many many hours of frustration, I havw to ask this.

Should my monitor be set at 1920x1080i ALL the time or 1280x720 ALL the time?

When watching HDTV I get a kind of glitch/tear on my Acer 3201W (native res 1360x768). Playing with the LCD timing DVT-Blanking, etc (not the frequency) using my NVdia drivers causes the screen to almost segment into quaters duing lots of motion.

1080i produces smooth silky, NO glitch viewing, which I suppose is because say Channel 10's source is interlaced. Even 7 being progressive is excellent under 1080i@25.

However changing from Channel 10 to 7 will crash when using purevideo under DNTV Live. It doesn't crash when I set my TV's res to 720p@50.

So 1080i=apparent greatness, though the image looks softer, and the desktop looks SHIT due to the ghosting and overscan

720P=rock solid desktop, but pretty constant tears during panning shots.

What do you guys do with your monitor resolutions? Do you change them when you watch a HDTV downloaded file from BT, and again when watching DVD and again when wtaching the various HD channels?

(ps I know about turning V-sync on, but it doesn't make a difference, in fact nothing I've read or tried will get rid of the tearing except going to 1080i)