Black Oval at Log In Screen

My Late 2009 iMac 27 Inch has been running fine.  Earlier this year, I had the screen repaired/replaced by official Apple store under 5-year extended warranty because dust was accumulating in lines between the glass and the monitor. Now, several months after the repair (and warranty expired) I've been encountering a large black oval at the login screen.  The startup screen comes up clear.  But at login I get screen pixels, lines, and debris together with the large black oval.  I can log in, but the screen issues continue making the computer unusuable.  Also, after a few minutes, it will just abruptly shut down.  I have started up from different disks to make sure it is not a software issue, and get the same result every time.
I've run the Apple Hardware Test from my original Apple CD-ROM, but it shows no hardware error.
I've attached a picture to show what is happening.  My questions:
(1) Has anyone ever encountered this?
(2) Even though the iMac is now out of the extended 5-year warranty period, does Apple strill replace the display based on defect--I had read that the 2009 27-inch iMacs had many display problems.

I also have the Late 2009 27" iMac and this exact problem happened to me this evening.  Never had any issues with it until now.  I was browsing the web and my system froze.  I could do nothing but restart with the power button.  When I did my screen looks EXACTLY like your picture with the black oval and same other noise on the screen as you.  I have yet to try any troubleshooting.  I'm running Mavericks also.

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