IMac screen pixelated and unreadable at startup...what's going on?

This morning when I started my computer for the day, I noticed that the wallpaper was very pixelated, almost like a transparent Photoshop layer.  When I moved the cursor all I saw was a pixelated box and I was unable to interact with any folders/icons.  I had to turn off the computer using the power button but when I restarted, the screen looked even worse - pink pixels on top and black ones on bottom.  I am having to use my iPhone to post this and while I took a few pictures of the screen I cant figure out how to post them here.  Another restart showed the same thing so I've left it turned off... It was behaving normally just last night!  Can anyone help me, or am I going to have to haul it into my local Apple store?  Thanks!

It's possible that the GPU is damaged. The only thing you can do is to take the Mac to an Apple Store or reseller, so they will tell you if it's a GPU or display issue and the cost of the repair

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    Interval Since Last Panic Report:  1060363 sec
    Panics Since Last Report:          12
    Anonymous UUID:                    065BD067-AFE6-4AB4-AEF2-30EF089ECE4C
    Mon Oct  3 16:08:51 2011
    panic(cpu 0 caller 0xffffff80002c268d): Kernel trap at 0xffffff7f80eb7282, type 13=general protection, registers:
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    RAX: 0x00000000fffd1485, RBX: 0x0ae8df8948ee7500, RCX: 0xffffff800c5d1d74, RDX: 0xffffff807fbf3584
    RSP: 0xffffff807fbf3310, RBP: 0xffffff807fbf3370, RSI: 0xffffff807b04a000, RDI: 0xffffff8000289003
    R8:  0xffffff806af44e34, R9:  0xffffff807b04a078, R10: 0xfffffffffffffffe, R11: 0xffffff80002d8240
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    0xffffff807fbf3050 : 0xffffff80002c268d
    0xffffff807fbf31f0 : 0xffffff80002d7a3d
    0xffffff807fbf3210 : 0xffffff7f80eb7282
    0xffffff807fbf3370 : 0xffffff7f80e9dfe5
    0xffffff807fbf3510 : 0xffffff7f80ef8726
    0xffffff807fbf3570 : 0xffffff7f80ef8985
    0xffffff807fbf35b0 : 0xffffff7f80e869ee
    0xffffff807fbf35c0 : 0xffffff7f80eb7bb5
    0xffffff807fbf3630 : 0xffffff7f80e83879
    0xffffff807fbf3670 : 0xffffff7f8091d255
    0xffffff807fbf36b0 : 0xffffff8000639d0e
    0xffffff807fbf3700 : 0xffffff7f8091d1d6
    0xffffff807fbf3720 : 0xffffff7f8091d793
    0xffffff807fbf3760 : 0xffffff7f8091cd81
    0xffffff807fbf3790 : 0xffffff7f80e429e9
    0xffffff807fbf37e0 : 0xffffff8000344b0b
    0xffffff807fbf38f0 : 0xffffff80003c333d
    0xffffff807fbf3b60 : 0xffffff80003caee9
    0xffffff807fbf3c00 : 0xffffff80003cb3de
    0xffffff807fbf3df0 : 0xffffff80003d2a6b
    0xffffff807fbf3e10 : 0xffffff8000580f25
    0xffffff807fbf3e60 : 0xffffff8000581185
    0xffffff807fbf3e80 : 0xffffff8000532ec4
    0xffffff807fbf3ee0 : 0xffffff8000533dd3
    0xffffff807fbf3f20 : 0xffffff8000533ea7
    0xffffff807fbf3f50 : 0xffffff80005ca88b
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          Kernel Extensions in backtrace:
             com.apple.iokit.IONetworkingFamily(2.0)[59A00F6B-3710-3E07-9921-70C45782FF8C]@0 xffffff7f8090e000->0xffffff7f80936fff
             com.apple.iokit.IO80211Family(400.40)[78A58272-2170-3068-9C63-88301C99C406]@0xf fffff7f80e2c000->0xffffff7f80e63fff
                dependency: com.apple.iokit.IONetworkingFamily(2.0)[59A00F6B-3710-3E07-9921-70C45782FF8C]@0 xffffff7f8090e000
             com.apple.driver.AirPort.Atheros40(500.55.5)[01000ACB-C064-3F42-820F-BDE2008267 25]@0xffffff7f80e64000->0xffffff7f80fa3fff
                dependency: com.apple.iokit.IOPCIFamily(2.6.5)[95ABB490-3AB5-3D5E-9C21-67089A9AE6A1]@0xffff ff7f80821000
                dependency: com.apple.iokit.IO80211Family(400.40)[78A58272-2170-3068-9C63-88301C99C406]@0xf fffff7f80e2c000
                dependency: com.apple.iokit.IONetworkingFamily(2.0)[59A00F6B-3710-3E07-9921-70C45782FF8C]@0 xffffff7f8090e000
    BSD process name corresponding to current thread: MailTab for Gmai
    Mac OS version:
    11B26
    Kernel version:
    Darwin Kernel Version 11.1.0: Tue Jul 26 16:07:11 PDT 2011; root:xnu-1699.22.81~1/RELEASE_X86_64
    Kernel UUID: D52AAB80-B2BC-3C6E-BBEA-78BD28064998
    System model name: iMac11,2 (Mac-F2238AC8)
    System uptime in nanoseconds: 2869233943350
    last loaded kext at 367480732136: com.apple.iokit.IOAVBFamily    1.0.0d22 (addr 0xffffff7f8078d000, size 36864)
    last unloaded kext at 437236879883: com.apple.iokit.IOAVBFamily    1.0.0d22 (addr 0xffffff7f8078d000, size 36864)
    loaded kexts:
    com.apple.driver.AppleHWSensor    1.9.4d0
    com.apple.driver.AppleBluetoothMultitouch    66.3
    com.apple.filesystems.autofs    3.0
    com.apple.driver.AppleMikeyHIDDriver    122
    com.apple.driver.AppleUpstreamUserClient    3.5.9
    com.apple.driver.AppleMCCSControl    1.0.24
    com.apple.driver.AppleHDA    2.1.1f12
    com.apple.driver.AGPM    100.12.40
    com.apple.driver.AppleMikeyDriver    2.1.1f12
    com.apple.kext.ATIFramebuffer    7.0.4
    com.apple.ATIRadeonX2000    7.0.4
    com.apple.driver.AudioAUUC    1.59
    com.apple.iokit.IOUserEthernet    1.0.0d1
    com.apple.Dont_Steal_Mac_OS_X    7.0.0
    com.apple.driver.AudioIPCDriver    1.2.0
    com.apple.driver.AirPort.Atheros40    500.55.5
    com.apple.driver.ACPI_SMC_PlatformPlugin    4.7.0b2
    com.apple.driver.AppleLPC    1.5.1
    com.apple.driver.AppleBacklight    170.1.9
    com.apple.driver.AppleUSBCardReader    3.0.0
    com.apple.driver.AppleIRController    309
    com.apple.AppleFSCompression.AppleFSCompressionTypeDataless    1.0.0d1
    com.apple.AppleFSCompression.AppleFSCompressionTypeZlib    1.0.0d1
    com.apple.BootCache    32
    com.apple.iokit.SCSITaskUserClient    3.0.0
    com.apple.driver.AppleFWOHCI    4.8.6
    com.apple.iokit.IOAHCIBlockStorage    2.0.0
    com.apple.driver.AppleUSBHub    4.4.0
    com.apple.driver.AppleEFINVRAM    1.5.0
    com.apple.driver.AppleAHCIPort    2.1.8
    com.apple.iokit.AppleBCM5701Ethernet    3.0.6b9
    com.apple.driver.AppleACPIButtons    1.4
    com.apple.driver.AppleUSBEHCI    4.4.0
    com.apple.driver.AppleRTC    1.4
    com.apple.driver.AppleHPET    1.6
    com.apple.driver.AppleSMBIOS    1.7
    com.apple.driver.AppleACPIEC    1.4
    com.apple.driver.AppleAPIC    1.5
    com.apple.driver.AppleIntelCPUPowerManagementClient    166.0.0
    com.apple.nke.applicationfirewall    3.0.30
    com.apple.security.quarantine    1
    com.apple.driver.AppleIntelCPUPowerManagement    166.0.0
    com.apple.driver.AppleBluetoothHIDKeyboard    152.3
    com.apple.driver.AppleHIDKeyboard    152.3
    com.apple.driver.AppleMultitouchDriver    220.62
    com.apple.driver.IOBluetoothHIDDriver    2.5f17
    com.apple.kext.triggers    1.0
    com.apple.driver.DspFuncLib    2.1.1f12
    com.apple.driver.AppleSMBusController    1.0.10d0
    com.apple.kext.ATI4600Controller    7.0.4
    com.apple.kext.ATISupport    7.0.4
    com.apple.iokit.IOSurface    80.0
    com.apple.iokit.IOBluetoothSerialManager    2.5f17
    com.apple.iokit.IOSerialFamily    10.0.5
    com.apple.iokit.IOFireWireIP    2.2.3
    com.apple.iokit.IOAudioFamily    1.8.3fc11
    com.apple.kext.OSvKernDSPLib    1.3
    com.apple.driver.AppleHDAController    2.1.1f12
    com.apple.iokit.IOHDAFamily    2.1.1f12
    com.apple.iokit.IO80211Family    400.40
    com.apple.driver.AppleSMC    3.1.1d2
    com.apple.driver.IOPlatformPluginFamily    4.7.0b2
    com.apple.driver.AppleSMBusPCI    1.0.10d0
    com.apple.driver.AppleBacklightExpert    1.0.3
    com.apple.iokit.IONDRVSupport    2.3
    com.apple.iokit.IOGraphicsFamily    2.3
    com.apple.driver.BroadcomUSBBluetoothHCIController    2.5f17
    com.apple.driver.AppleUSBBluetoothHCIController    2.5f17
    com.apple.iokit.IOBluetoothFamily    2.5f17
    com.apple.iokit.IOSCSIBlockCommandsDevice    3.0.0
    com.apple.iokit.IOUSBMassStorageClass    3.0.0
    com.apple.iokit.IOUSBHIDDriver    4.4.0
    com.apple.driver.AppleUSBMergeNub    4.4.0
    com.apple.driver.AppleUSBComposite    3.9.0
    com.apple.iokit.IOSCSIMultimediaCommandsDevice    3.0.0
    com.apple.iokit.IOBDStorageFamily    1.6
    com.apple.iokit.IODVDStorageFamily    1.6
    com.apple.iokit.IOCDStorageFamily    1.7
    com.apple.driver.XsanFilter    403
    com.apple.iokit.IOFireWireFamily    4.4.3
    com.apple.iokit.IOAHCISerialATAPI    2.0.0
    com.apple.iokit.IOSCSIArchitectureModelFamily    3.0.0
    com.apple.iokit.IOUSBUserClient    4.4.0
    com.apple.iokit.IOAHCIFamily    2.0.6
    com.apple.iokit.IOEthernetAVBController    1.0.0d5
    com.apple.iokit.IONetworkingFamily    2.0
    com.apple.driver.AppleEFIRuntime    1.5.0
    com.apple.iokit.IOHIDFamily    1.7.0
    com.apple.iokit.IOUSBFamily    4.4.0
    com.apple.iokit.IOSMBusFamily    1.1
    com.apple.security.sandbox    165
    com.apple.kext.AppleMatch    1.0.0d1
    com.apple.security.TMSafetyNet    7
    com.apple.driver.DiskImages    326
    com.apple.iokit.IOStorageFamily    1.7
    com.apple.driver.AppleKeyStore    28.18
    com.apple.driver.AppleACPIPlatform    1.4
    com.apple.iokit.IOPCIFamily    2.6.5
    com.apple.iokit.IOACPIFamily    1.4
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    Memory Module: BANK 1/DIMM1, 2 GB, DDR3, 1333 MHz, 0x80CE, 0x4D34373142353637334648302D4348392020
    AirPort: spairport_wireless_card_type_airport_extreme (0x168C, 0x8F), Atheros 9280: 4.0.55.4-P2P
    Bluetooth: Version 2.5.0f17, 2 service, 19 devices, 1 incoming serial ports
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    Serial ATA Device: HL-DT-STDVDRW  GA32N
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    USB Device: Built-in iSight, apple_vendor_id, 0x8502, 0xfd110000 / 4
    USB Device: IR Receiver, apple_vendor_id, 0x8242, 0xfd120000 / 3
    USB Device: hub_device, 0x0424  (SMSC), 0x2514, 0xfa100000 / 2
    USB Device: Internal Memory Card Reader, apple_vendor_id, 0x8403, 0xfa120000 / 4
    USB Device: BRCM2046 Hub, 0x0a5c  (Broadcom Corp.), 0x4500, 0xfa110000 / 3
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