Please help: When running video software, screen goes crazy

I am experiencing the following issue and have already taken my computer (under warranty) to the Genius Bar where they say nothing shows up as being wrong. They want to do further testing but I can't part with the laptop till the work week is over tomorrow night.
In the meantime, does anyone have a clue?
Here are videos of what's happening:
http://s320.photobucket.com/albums/nn347/Rainbocarnage/?action=view&current=VID_ 20110616_155456.mp4
http://s320.photobucket.com/albums/nn347/Rainbocarnage/?action=view&current=VID_ 20110616_115826.mp4
I comes on gradually with an all over "blink" and flicker before it freezes up and goes crazy. This only happens, so far, when I use a program called CatDV which is a footage cataloguing software I need at work.
Any ideas or suggestions? The genius bar did quick diagnostics and said everything passed and I updated all software/system updates already.

The Basic Troubleshooting Steps are:
Restart... Reset... Restore from Backup...  Restore as New...
Restart / Reset
http://support.apple.com/kb/ht1430
Backing up, Updating and Restoring
http://support.apple.com/kb/HT1414
If you try all these Steps and you still have issues... Then a Visit to an Apple Store or AASP (Authorized Apple Service Provider) is the Next Step...
Be sure to make an appointment first...

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