More info here: http://wmpoweruser.com/has-the-htc-u...-to-go-16-bit/
These constant issues are getting to me.
I have an Omnia 7!
To see if you have banding you can install WP Bench of the market place > Display > Gradient test (If transitions are not smooth = banding)
For the Fix please see below:
(Thanks for the link: Saijo)
Please note that the registry settings show minor performance differences depending on the phone model used. (Please read the thread for more info)
Warning: A known bug after changing the registry entries is the Red Screen Bug
Current Mango demo units still show banding (24/5/11)