Hi farshizzo, the computer I'm running this on is brand-new so it's unlikely there's a problem with the GPU itself.
I just updated the GPU drivers for my NVIDIA GeForce 9600 GT to v. 6.14.11.7516 (released 02/05/2008, digitally signed, latest version according to NVIDIA website). The problem persists: the computer monitor shows the image "shifted", HMD shows not all of the lines, right side is blurred and all messed up. At this point I'm pretty sure there's something wrong with the HMD itself. It also gets insanely hot within minutes..