My iMac Screen has become completely pixilated and flashing

Went to use my computer this morning and after about 5 minutes the screen became completely pixilated.  Shut the computer down and tried to restart and got this.
Called apple care but my protection plan has expired, representative was very nice and after listening to me describe the problem he sent me a link to reset the PRAM.  I followed the instructions and now I get this:
Computer continues to go to a grey box that says I must restart.  Does anyone have any other suggestions for what this may be??  PLEASE HELP!!

Allan, the information is so confusing....
Indeed! That's why I editted out that part after having second thoughts and seeing your follow-up. The MacTracker database is pretty good about details but does not go into which iMacs have separate video hardware. From personal iMac exerience within the family, we jumped from a G3/400 to my mid-2010 quad-cor i7 27-inch without managing to own any of the intervening models!
My biggest concern for the OP is parts. Althoguh that model still shows as "supported," there have been times when Apple didn't have parts that old.

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