Need a little help with PS CS4

[Dark Knight]

Take a look at the sample gradient jpeg I have made below, my problem is all of a sudden I cannot get my gradients to come out with a smooth transition from one color to another. Does everyone else see the choppy lines in the transition colors I am seeing?

I seemed to have had this problem a while back, but I cannot seem to remember what was done to correct it and it is driving me bat sh!t, does anyone know how to correct this?

Image is 2560x1600, RGB Color 8 bit , 72 pixels per inch. I have tried increasing pixels per inch and also tried 16 and 32 bit color, both make it worse.

Running Adobe Photoshop CS4 on a Windows 7 64 bit machine, 6 gigs of ram / Pentium dual core processor 2.60 gigs each. All drivers are up to date.