Pink vertical lines on my screen &freezes on startup screen

24" iMac 8,1 early 2008
Factory: W8 Shanghai China
Recently my computer froze and I had to power off & power back on manually. When I powered back on I had a bunch of wavy pink lines all over the apple startup screen and would freeze after 30 seconds of the gear spinning. Searching on the Internet I read to try and reset the nvram by holding down Command Option P & R. Once I reset the nvram my computer rebooted and the pink wavy lines were gone they are now pink vertical bars and still freezes. I have the original boot disk that came with my computer and tried running Apple Hardware Test, results came back: "No trouble found". Not sure what else to do, I have read all over the Internet it could be a million different things it could be my RAM, it could be my logic board, or hard drive, or LCD screen not sure how to rule any of these out. I also read there could be a defect with these computers made from factory W8 in Shanghai China and Apple will repair free of charge. Does anyone else know anything about this? Please help!! Thanks

Run Apple Hardware Test in EXTENDED MODE at least 3 times back to back. If you ran the basic test that is useless. I doubt a 5 year old machine is covered by any type of warranty however you can always check to see if there is an active recall. If there is and it's still active then take it to your local Apple Store or AASP for repair. If it's not covered as I suspect then you will have to have to pay for the repairs.
http://www.apple.com/support/exchange_repair/

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