"I'm seeing everything double. I mean every viewable object has a shadow including fonts, pics etc. It really hurts my eyes. Is there any remedy for that?"

The only things I can think of are anti-aliasing (don't know what it really means), or that you're overdriving your video card. You're not going through a KVM are you? Hmm, another possibility is if you're not using 1680 x 1050 resolution. I've heard that there can be video issues if you don't use an LCD monitor's native resolution. Oh, and hit the autoresolution selection/button wherever they have it hidden in config on the monitor itself.

>You're not going through a KVM are you?

You are right I am using a kvm(cheap iogear) switch after removing it no more shadow.
I've a quick question though. When I play penguin-racer and move very fast you can
see the image gets blurry. Is this fixable? I set up the game using 1280x1050
resolution but still have the blurriness.

Antialiasing? We gotcha runnin sport, so you're on your own from now. Glad to help, though.