I want to point out to you that there is an incredible range to the cost of these setups. I used to do a certain amount of "finishing" work. I would receive a rough layout for the thing and mask out images as necessary, do all color correction, retouch anything necessary out of the thing, and make a proof to be viewed on a color corrected print viewer (you can buy stickers that show a mark whenever the lighting temperature is incorrect, so that people know to expect metamerism). When you add things up at that level such as printer + RIP software + printviewer + display + colorimeter, you're up to several thousand dollars. I'm just saying this to give you some perspective. It isn't just the display. A good display just makes some things easier.
Going back to your initial concerns, color can be a few things. If there it isn't being recognized as an RGB output stream, that would cause some strange colors. It would not affect sharpness if the output resolution is still recognized at its native setting. You would find that under system preferences -> display. Keep in mind until we get external displays, notebook displays are ahead in terms of dpi. I have a 24" 1920x1200, specifically the older version of
this one. Colors are great. I don't have grey tracking problems or anything annoying like that. As far as sharpness is concerned though, I can definitely see more aliasing than on my 17" macbook pro. If you're uncomfortable with the dpi, it would be good to go to either a higher resolution 27" or a 24" at 1920x1080 or 1920x1200.
If it only has DVI that might make sense. Typically the only reason you would get better results is if the monitor is being treated as a television.