Weird Panoramic View on Zoom-Out.

[Herodotus]

Salute, fellow Pilots.
I have a new PC that is running "IL-2: CoD" at Max Settings just perfectly, even over London.
Problem is my 22" monitor burnt out (1680x1050) so I replaced it with a BenQ 24" (HD 16:9 locked ratio at 1920x1080) and here's where the fun begins. The game still runs perfectly well, but when I begin to zoom out the view skews into an almost telescopic effect. Planes around mine begin to flatten into strange objects and the draw distance looks like a trunnel effect. The whole view is completly telescoped unless I zoom right back in.
Anyone have any ideas?

I7 930
GTX 560Ti 1GB
8 GB DDR3 RAM
Win 7 64-bit