I have used KDS for CRTs for many years now. I have seen some models do this, but not recently. Try plugging your PC and Monitor directly to the wallout (with ground). See if it happens now. If it doesn't, get a new (good) surge protector. What if you disconnect the VGA cable and power it on and off? If the problem goes away it might be the video card. Try it on another computer to see if it follows. Check KDS's website for any support questions.
Last option. Call or email KDS for your concerns.
Good Luck!
-JC