Strange Look to Image Review

I've been experimenting with a Nikon 50/1.8E on the NEX 3. The IQ is great--crisp, contrasty, good color. However, when I review the image on the LCD using the magnifier, the image is a horrible monochromatic pixelated mess with lots of large-scale moire. The non-magnified review image looks fine. This does not happen with the E-mount kit lens or a Minolta A lens on the adaptor. Obviously the Nikon lens can't communicate with the camera the way the Sony and Minolta lenses can, but I can't see how this could this affect the review image.

Has anyone experienced this phenomenon? Can anyone explain it? Am I doing something wrong?