Have you also got a 2007WFP, and do you notice the lines on default (50) contrast settings? It's just that you only really see the lines on the 2007WFP if you start taking the contrast above default. When I first read about this problem I posted several times in a thread here that my 2007WFP didn't have the problem at all, until someone posted to try turning up the contrast, and then I saw it. So it's such a subtle thing that I didn't even see it on default settings.
I think on the 2007WFP, contrast isn't meant to be used over 50. You'll see as you turn it up the whole colour range gets dramatically compacted and completely ruins the picture, and it also brings out the wavey lines to the point where they are obvious, but like I said earlier, I had a 360 connected to a 2007WFP for months and never noticed the lines at all on default contrast settings. It could be that contrast works differently on different LCDs. On my 2nd monitor - Samsung 172T - I couldn't see the lines at all no matter what settings I used. On my LG 32" LCDTV I can just make out the lines. It must be something to do with how the monitor treats the signal - maybe some screens amplify an anologue signal which would exagerate a poor signal.
There's a few people on the console forum who seem to know all about this problem, so maybe ask them. There was a thread about it here but I can't remember what it was called. Try searching for 2007WFP, 360 and VGA.
