My iMac display occasionally flashes green and purple horizontal lines... is anyone else having this issue, or know of a fix?

The screen occasionally flashes purple and green horizontal lines across it. Then the buttons on the left side of my menu bar turn fuzzy, and when I click on them they become black rectangles with green and purple lines running thru them. The dock also has a hint of green and purple in it. And some of the shadows around application windows are just black outlines, instead of gradiating shadows. Is this happening to anyone else? Does anyone have a fix? I read about the other supposed graphics issues, but I think they're unrelated, or at least left unfixed by the firmware update.

All Macs come with a one year limited warranty.
If you purchased AppleCare, contact info >  http://www.apple.com/support/products/
Why can't you use the Bluetooth keyboard?
According to the link I posted for the AHT..
"For some Apple computers that shipped with OS X Lion, if Apple Hardware Test cannot be found on the hard drive, an Internet-based version starts up instead."

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