The VGA input on the 3250 is great. The panel will 1:1 pixel map almost instantly giving you a crisp, clean picture. No reason to use a VGA-DVI adapter. DVI is a digital signal while VGA is an analog signal. Using such an adapter will probably decrease PQ. The DVI slot is HDCP compliant, so you will have no trouble with HDCP compliant devices as long as they have DVI out. If your device has HDMI (HDCP) out, you can use a HDMI-DVI adapter and it should work MOST of the time. DVI-HDMI works 100% of the time, but a few DVI devices have been reported not to work with HDMI inputs on a few panels. You probably have a 99% chance the HDMI-DVI will work, so it's not really an issue to worry about. Of course having HDMI would be best. ;)
By the way, you can access the service menu on the DV3250 by hitting "Menu-3-2-5-0". You can tweak the PQ and calibrate your panel much more within the service menu.
SKIN - Why do you use 1024x768 in fullscreen mode? The text will look horrible with those settings. 1:1 pixel mapping is essential. Set the aspect ratio to "Real" and use 1360x768 or 1366x768. The difference is remarkable.
You can 1:1 map at any resolution, but at 1024x768 you will have large black bars on the sides. Choose the "REAL" aspect ratio to get 1:1 mapping. Ideally you want your signal to be 1366x768. ATI cards can't do 1366x768 without Powerstrip, but at 1360x768 you only lose three pixels on each side. nVidia cards can do 1366x768 natively I think.
Have you guys accessed the service menu? Lots of extra options for tweaking optimal PQ.