The Really fast way to GreyScale Images (DirectX)

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OK, here's an example:




(This is using the SetMono($FFFF0000) from your original example up above... The most obviously 'wrong' part are the trees, which should be black if all it does is convert to B&W.

Additionally, it looks like the modified version has an enormous increase in visual artifacts over the original, although that could be related to the higher contrast of the B&W version. (Although desaturating the image in a paint program does not appear to increase the visibility of artifacts)
And even though the colors are apparently reverses, it's no a true negative either, because if I invert the colors of the B&W picture shown by your code, it looks a lot darker than when I manually desaturate the color image in a paint program.