MADe,
Be careful when you are assuming a 240Hz tv can actually do 240Hz refresh rate from a video signal. MOST of the time, this just isn't true.
Most TV manufacturers are advertising Hz rates of 120, or 240Hz for LCD and 600Hz for Plasma, but what they don't tell you is, that's what they support for OUTPUT. INPUT (as in, the signal you're sending to the TV) is most often still limited to only 60Hz. So even if you're using a 240Hz Bravia TV, your refresh rate is still a maximum of 60Hz.
So why would TV manufacturers do this?
There's a few reasons.
#1. Marketing. 240 is bigger than 60, so looks better on a spec sheet.
#2. Enhancement features. Today's TVs attempt to "enhance" what you are actually seeing. For instance, because of the way LCDs typically work, if you are watching a fast paced sport, you'd used to see an "afterimage" which would make the game look kinda blurry during heavy action. By increasing the Hz of the TV, and loading it with certain image enhancers, that "afterimage" is reduced dramatically, and can make things look very sharp, even with a lot of motion going on.
There's other reasons too, but I'm not going to go into a monster AV post.
So here's what happens when you turn off V-Sync.... you send signal faster to the tv/monitor, than the tv/monitor can handle. It attempts to keep up by displaying things as quickly as it can (usually 60Hz in the case of LCD), but since a computer (and console)'s framerate can fluctuate, what you wind up with is the screen starting to display 1 frame of animation, and finishing by displaying a 2nd, or even a 3rd one, making the picture look weird.
Stick with V-Sync on.