The problem lies with the fact that you've set the iilyama screen at to high a resolution for the VGA output from the BIOS. The reason it works on the TV is because your grahics card is pumping TV OUT at a far lower resolution, probably around 50hz but the feed to the screen is 1280x1024. You will need to use the controls on the front of the screen to knock it down to something like 1024x768 or even lower or put up with the annoying error message whilst installing Vista. Can you not remove the error message by using the Exit key on the front of the screen?
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Do you know that we're all in line for succession to the throne? Really?
Well, if forty-eight million, two hundred thousand, seven hundred and one people died I'd be Queen.