24" iMac Display Backlight Failure

This afternoon, an issue developed on my iMac 24" (Mid-2007) where the top half of my display seemed like it flickered and burned out.  What it looks like currently is a very dramatic gradient from dark to light.  I haven't found any support documents or discussions that address an issue like this.
I tried restarting my computer and to no avail, the problem persists.  Also tried resetting the SMC and booting from the Install CD, and this did not fix the problem either.  The basic Apple Hardware Test did not identify anything wrong (I did not do the extended test).
I am suspecting that the backlight in my display is failing.  I wanted to see if anyone else encountered this issue and any thoughts about what could possibly be wrong.  I am afraid that my iMac might be Genius Bar bound if no solution exists.    I'm scared of what the repair costs might be...
Any thoughts?
Thanks,
Maikeru-san

I experienced the same issue. When I don't use the iMac 27" and it automatically powers down I hear this ticking clock noise.
Troubleshooting Questions to Apple Support:
1) Is this automatic standby the same mode like manual standby mode?
2) it's not a display pitch sound but rather a HDD heads parking sound
3) Is this a hardware defect or a software issue?
My iMac is 48hours old and I bought it brand new directly from Apple.

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