New iMac freezing, showing Graphics problems and Wifi Problems on 1st Day

My sister just received her new iMac - 20 inch - 500 GB drive.
I started seeing problems during the download of the FIRST software update from apple. There was a black box in the lower left corner of the software update window where it should have been grey (or metal).
On reboot, I also occasionally show weird flickering graphics in the lower right of the login screen.
My new iMac also frooze about 4 different times during the installtion of various updates during the first 4 hours of use. Mouse and keyboard would not work. Once it frooze at the login screen after clicking on the user name.
I also had wifi issues. After three hours of use, my STRONG wifi connection was lost. Moreover, I could not see any other wifi stations. (normally I would see 5 other wifi access points from my sister's neighbours). After reboot, the other wifi access points would appear including my sisters but I could NOT connect to my sister's wifi access point. It said I had an error. I checked the keychain and it showed the right key/password for my sister's wifi AP. I had to run Mac Network Diagnostics and reset wifi to get things working again.
It sounds like a sick iMac. I know others have experienced freezing. But given all these problems, should I ask for a new imac?
Rob
P.S. My sister got AppleCare as well. Maybe that was a good thing...

I had a long chat with Apple Support. It would appear that Apple's policy is not replace the computer unless it can be determined that it is a hardware problem (even though my problems started to appear right out of the box before I even had a chance to download any updates). According to the Apple product specialist, sometimes there are bad installs of the OS at the factory.
Apple wanted me to format the drive and reinstall the OS.
Fortunately, I did not have to reinstall the OS! I started to see graphics problems when I was asked to run the Disk Utilility off the Install DVD (so I could format the drive). So clearly there was a hardware problem.
In retrospect, I really wish there was an Apple Store nearby to buy Apple computers. I am sure the store manager would not ask me to go home and reinstall the OS etc and try again when the computer doesn't work properly out of the box.
Those who have Apple Stores nearby do not know how lucky they are!

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New iMac freezing, showing Graphics problems and Wifi Problems on 1st Day

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