My Environment:
iMac August 07 Model 2.0Ghz, 1gig Ram, ATI Radeon HD2400
iLife 08

My Issue:
Right out of the box Magic Garage Band Graphics have been playing up. Each time I click the application it sometimes looks perfect and sometimes looks like the following two images. Image 1 AND Image 2

What Apple Said:
After talking to Apple for over 1 hour via phone I was transfered to the head senior tech "FRANK" who guided me through different test to see if my graphics card was stuffed.. All the test passed perfect.. I can run 3D Games and everything. The head senior looked at the images and took my problem to the tech team in europe. They where unable to recreate the problem. They have now passed the problem onto Apple USA.

Searching Forums I think I have found someone else with the same problem here link

I love my Mac and I am hoping that there is nothing wrong with the graphics card.. But I dont understand after two formats the problem is still there...

Please if you have seen this problem post HERE!! Apple need to be aware of this even more!!! I hope its a glitch with iLife.

Here is a video I made to help explain.
Video Link
(Please note the video is poor quality so you need to look at the flickr images I have attached above.