Error "Auto configuration in progress"

I am using Sony Vaio Computer working with XP installed. I have a 15" Polaroid LCD TV as a monitor. For no apparent reason it now has a box in the middle of the screen stating "Auto Configuration in progress" it is since last 4 days. Polaroid has no answer. I have disconnected the monitor and re-connected. I have rebooted the computer. I have restored the system to a date prior to the problem. No new programs were added prior to the box appearing. All computer operations function behind the box. The box is the same style and size as the "No Signal" box displayed when it is disconnected from the computer. The screen flickers and fades, and occasionally blanks out-goes to blue screen and then comes back to the screen I am working on. HELP!!! I'm going crazy trying to get rid of the obnoxious blue box.

Please help if Any idea???

It's not technically a PC problem, it's the TV strying to auto-calibrate.
Do you have the model number of the TV?

it is Polaroid FLM-153B

OK.
1stly can you confirm you have set your PC desktop resolution to 1024x768@60hz?
Trying to display a higher resolution/refresh rate on this screen could damage the TV.

Do the on-screen menus work (pushing the menu button on the top of the screen rather than the remote control).
If so, can you get to the Setup>Factory Reset function?

The resolution is set at 1024x768 @ 60 hz. And I reset to factory default, but that didn't help. BTW, I think I'm a new big fan of this site. Will be a bigger fan if we get this figured out. I couldn't believe you responded so quickly!

Before I blame this on a fault with the TV (and it is a real possibility) does the Auto Configuration box still appear when you change input source on the TV (To an AV-In, s-video or TV signal for example)?

Box is not there on any other input. When connected to cable, however, has only black screen (doesn't even go to blue) and auto scan of channels will not function. Cannot be turned off, but must be unplugged. When plugged back in, it doesn't remember it's input, but goes to blue screen at composite input. All inputs have been reset to factory default. I'm thinking I need to go buy a monitor. What's your take on the situation? Are we in consensus?

Given the failure of the other functions, yes, I would suggest the TV is at faulty.