Here is an update:
I took out my nVidia GeForce2 Ultra (64 MB) and put in the Trident 9440 PCI card from my computer I had through the 90's.
The result: No lines, no wavyness, and no gray bars.
Basically, my GeForce2 Ultra is the issue, and I now have a cool looking PCI card with a small fan and nifty nVidia logo paperweight.
I am not sure if I should attempt to repair the nVidia card or just keep it in my PC idle and unused.. I don't know anything about video card repairs, and I don't really want to spend a lot of money repairing a video card I don't even use anymore.
That being said, I will need a better card that supports higher resolutions, so that I can use 1280 x 1024 in 32 bit, and not the 256 colors supported now.
I'm relieved to find the cause of this, because it was starting to piss me off. I also think it's pretty comical that I am getting better results with a video card that sucked almost 10 years ago, than one that cost over $300 a few years ago. But in the end, everything worked out as well as expected.