Alathorn:
That's not quite exactly right, but it is the right idea. with a 25ms pixel response time (which afaik is still the best native lcd response time out there), 40Hz is actually the
best case scenario without any bluring. The reason is that going from white to black to white is easy. You just either throw the voltage up, or drop it to the floor for to get either color. The problem is the intermediate shades. You (with current technology) have to wait for the pixel to stabalize at the right voltage and that ends up taking time. You could easily end up with something more like a 25Hz picture if your moving between two intermediate colors. Mitsubishi has a really neat tech coming out though, that should be usable with current displays. The way it works, is that instead of waiting to stabalize on a certain color, it either caps or bottoms the voltage and at the precise moment when the color is right, levels it at the right voltage.
Here's the paper on it:
http://www.extremetech.com/article2/0,3973,10085,00.asp
Basically, after using mitsubishi's tech, a panel which previously had a best case scenario of 25ms now has a worstcase scenario of 25ms. (as white to black now takes the longest to switch between). This means that most of the time you should be getting around 60Hz, with a worst case of 40Hz. *Much* better than current LCDs.
Nite_Hawk