IMac 17" has vertical lines of multi colors

Just bought a iMac 17" and it has vertical lines of multi colors. What are the causes, how can I troubleshoot the source and what is the most cost effective way to fix?

Since the last 17" iMac was discontinued in 2007, it's unlikely that it's still under warranty, unless you managed to get Applecare with it.
I had the same problem. The local Mac repair place, Dino computers in Pasadena, said that what it needs is a replacement display, but that alone costs $500, plus installation, so it isn't really worth it to fix.
But I found a website call realmacmods.com, which offers a kit just for this purpose. Not for the layperson however. You can get a kit for about $50 and supply your own 17inch display, or you can buy a display plus adapter board for $150. I talked to Dino and they said they could install it for me for about $120. I decided to get some Mac tools and try it myself. The vendor recommends you have some laptop repair experience, which I don't have, but I have opened up desktop computers before, and that helped. Anyway, it worked. And, you get a higher resolution display: 1900 x 1200, formerly 1440 x 900. It looks great. But again, not for the layperson.

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