Wow you've got your settings JACKED. Wonder how long the picture will look good with the contrast and brightness that high? geez. Your sitting 6 feet away from a 22 inch monitor? When I play on my 22 I sit about 3 feet back. 6 feet back on my 32 inch tv. My Samsung 22 inch looks fine at 1280 x 720, and only 3 -4 feet away. Play with the resolutions, some will look crappier than others, ESPECIALLY on VGA. But you said you got the HDMI which is good. But you need to recalibrate that monitor, I doubt you get very good white detail because your contrast is so high. And, a high brightness makes screens not last as long, not to mention does anything thats supposed to look black actually appear black?. 1280 x 720 is supposed to be the best match (it scales the most evenly, so jagged edges don't show up as much. Even though a lot of 360 games have AA off to keep frame rates up) to 1650x1080 if thats your native.
Check out CNET.com for a screen adjustment guide. Theres a way to properly calibrate the black and white levels. Raise the brightness all the way up and then come down until the blacks appear black. Then on the brightness you want to raise that all the way up, and lower it until you can see the details on something that is all white, for example a white shirt.
And with hdmi you shouldn't really need that much sharpness. I always have mine off.