I'm running Windows 7 Ultimate 32-bit. Graphics card, radeon xfx 4650 in my samsung 32 inc led tv monitor. I went to change the setting and it only went to 1920x1080 at 60 Hz. I'm thinking the lines are from the lower Hz.
Most LCDs have a refresh rate of 60 Hz, the newer 3D-capable LCDs have 120 Hz refresh rate. The settings you get are perfectly normal for a Full-HD display.
You cannot compare this refresh rate to older CRTs, even at 60 Hz there is no flickering for an LCD.