Logic board failiure suspected, next step advice needed

I've had an iMac for about 6 years now. It's an early 2008 edition running 2.66 ghz intel core 2 duo, 2gb 800 mhz (i don't know how much of that is important, i've just copied down what I had available). I had it for a year when it suffered a hard drive failure which was subsequently replaced (i think, could have been repaired).
Lately i'd been having a few problems with it. The screen came up with a checkered green pattern which took a safe mode reboot to get rid of. A graphics card failure said the internet, but it only happened once. This probably should have made me take more notice. The mac in general has been... Off it's game so to speak. DVDs wouldn't register and would get spat out, or they would crash the player in the middle of a film. Quicktime would freeze every so often, and it would cause other programs to freeze up as a result. I took a massive amount of files off, deleting them or moving to an external drive. I was getting things tidied up enough to do a backup (which i freely admit I have never done, because i am an idiot) when waking it up from sleep resulted in a plain black screen, nothing else. I shut it down. Turning it on this morning and whilst I can hear the fan and the drive start up, there is no chime and the screen remains black.
I've tried a PRAM startup and SMC but neither have worked. I don't have an external monitor to try checking anything as suggested on some websites. So I assume I'm looking at a failed logic board. It doesn't look like it's something that can be fixed easily, so my real questions are less of what do I do now, more what are my best options?
Do I try and get the board fixed or replaced? How much is that going to cost and would the other issues i have had be related to it, or another thing that would need fixing (like the graphics card)?
I'm still operating on 10.5.8 and i'd need to buy at least one middle OS in order to upgrade to the newest version. Would I be better off buying a new imac? It's a horrible analogy, but do i "buy a new car, or try to get by replacing the engine and parts all the time". My nearest Apple store is smack bang in the middle of the christmas shopping central, so getting there is a bit of trouble right now.
Depend on the answers I get, i'll have further questions regarding selling/getting rid of an old mac.
Very much appreciate all your replies.
- Dan

You have a 7 and almost 8 year old machine, unless you can find the parts very inexpensively and you have the expertise to repair it, it likely is not worth taking to an AASP to be repaired.

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