iMac Screen - Flickering w. 24 colors ???

Hi,

So I turned on the iMac and it was running fine for about 5-10min when I noticed total loss of color to what looked like 24 colors and flickering... I tried to do the display firmware update 1.0 (I'm running MAC OS X 10.6.2) it gave me some alert that I don't need this update... All software is up to do...

Any ideas?

Attached a couple pics...

Tks

Welcome to Mac-Forums
Have you tried changing the settings in System Preferences > Displays?
If so then try reseting PRAM and NVRAM, PRAM contains monitor depth etc.
Guide on how to do this is here:
Resetting your Mac's PRAM and NVRAM

- Simon

As you were advised in Macrumors, looks like your video card is bad. Apple are the best to advise.

Gpu

Okay...

I've tried system display settings w/out any success

Tried resetting the PRAM and NVRAM, no love.

Next step... Applecare.