I'm not at home now so can't 100% confirm or rightly remember exactly, but moving the z-buffer down a notch solved this problem for me I do believe.
I have no idea or care what the z-buffer actually is or does, but I found that it worked just by trial and error and a determination to get it working.
Using XP, TH2go digital at 5040x1050@57. (Works with both GTX285 and 8800gtx). The frame rate loss, even with the 8800GTX, is almost non existent with LFS.
Not experienced any other problems at all with TH2go and LFS.
If anyone is thinking about Th2go, and you'd be crazy not to even think about it as it is the single best simming investment in my worthless opinion, be sure to check out
http://www.widescreengamingforum.com for a list of monitors that are confirmed to work at 57Hz, not all do as I found out!
Dell 2408 wfp work ok.