Why has my monitor suddenly begun to have a moiré pattern all over – it is even showing up on my icons on the dock? It appears to be very thin bright green vertical lines. I have a 2008 iMac which is running 10.6.8. What does this mean?

Why has my monitor suddenly begun to have a moiré pattern all over – it is even showing up on my icons on the dock? It appears to be very thin bright green vertical lines. I have a 2007 iMac which is running 10.6.8. What does this mean? I've attached some screen shots below.
Also experiencing some funky issues with my wireless keyboard. With new batteries, it will just stop functioning. Certain keys intermittently won't work. Also the fans go on as soon as I turn the computer on - some times they stay on and sometimes they don't. Ever since upgrading the operating system - I've been having many issues with this iMac. Not happy. Any answers out there?

Thanks for your reply LexSchellings, There is no disc in the drive and I went through the suggestions you put forward on the phone with Apple support without any luck. I can put a disc in but it pops straight back out again without registering on finder.
The idea of using an external drive was to enable me to avoid the cost and loss of productivity whilst machine in repair... if I have to take it in to get the old drive removed than I might as well have a new internal drive put in, although I do worry about the reliability of these apple drives given my experience with this one coupled with my limited online research ... on line forums seem to be full of people with the same problem (although perhaps searching such forums is bound to make it seem a common problem as users with perfectly working machines are less likely to post (?)) Your reply suggests that no external drive will work whilst the existing drive is in place.
As a postscript: I do realise that this is a user forum ...my secondary question was asking if anyone knows how to put forward a case/complaint to Apple... I can't find a link on the support page that would enable me to do so and I was wondering if anyone on this user forum had any ideas/experience..

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