20" iMac screen is gray with blue and gray vertical lines after restart

Hey, I have a 20" Intel iMac that I purchased about 2 years ago. I have had no problems with it at all until yesterday afternoon. I had just woken it from sleep (no problems at all with the screen), used it for 5 minutes to check email and then left for 10 minutes only to come back to this on the screen:
http://www.flickr.com/photos/47548003@N03/4357722284/
I have tried restarting with the same result each time. The computer starts up with a gray screen that fades around the edges to the picture shown above. I am still able to use the computer with an external monitor, so obviously just the screen seems to be affected. Any ideas about what could be wrong?

Welcome to Apple Discussions.
It looks like the graphics card may be failing. If you are covered by AppleCare contact Apple immediately, if you are not I would recommend bringing it into an Apple Authorized Service Provider to be checked out.
Sorry for being the bearer of bad news.
Roger

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