You will not be able to use PAL mode with any real results, using an NTSC monitor.
The monitor may be your problem. 2002 monitors are not the best Commodore made. You would be much better off with an 1084 (S, D or ?).
I use a GVP graphics card in my A2000 to a SVGA monitor with great results. Software Hut still has a few of these cards left, I believe. This isn't the cheapest way out, but an excellent way to display very high res screens.
