Macbook Display goes crazy and Mac hangs

Macbook 2,1 A1181

Screen goes crazy (see attached) and Mac freezes, have to power off and on

Can work a full day without an issue, other times seems to happen every few minutes

I'm new to Macs so would appreciate some guidance as to what the problem is (e.g. video card or memory)

Is this a known issue, and is it an expensive fix?

Your MacBook is a Mid 2007 machine using an Intel GMA 950 chipset for graphics. The problem appears to be one involving the graphics chipset or logic board.

Did you buy this machine second hand or maybe it was given to you? In any event, if it's the graphics chipset that's acting up, it means replacing the entire logic board (mother board). Since the machine is not worth much more than $200 - $250, replacing a logic board would not be worth it.