Stereoscopic visualization systems based on liquid crystal shutter (LCS) eyewear and cathode-ray tube (CRT) displays provide today the best overall quality of three-dimensional (3-D) images and therefore have a dominant position in commercial as well as professional markets. Due to the CRT and LCS characteristics, however, such systems suffer from perceptual crosstalk ("shadows") at object boundaries that can reduce, and at times inhibit, the ability to perceive depth. In this paper, we propose a method to reduce such crosstalk. We present a simple model for intensity leak, we assess model parameters for a time-sequential LCS/CRT system and we propose a computationally efficient algorithm to eliminate the crosstalk. Since the full crosstalk elimination implies an unacceptable image degradation (reduction of contrast), we study the tradeoff between crosstalk elimination and image contrast. We describe experiments on synthetic and natural stereoscopic images and we discuss informal subjective viewing of processed images. Overall, the viewer response has been very positive; 3-D perception of many objects became either much easier or even effortless. Since the proposed algorithm can be easily implemented in real time (only linear scaling and table look-up are needed), we believe that it can be successfully used today in various stereoscopic applications suffering from image crosstalk. This is particularly true for PC-based 3-D viewing where the algorithm can be executed by the CPU or by an advanced graphics board.