11/30/2007, 6:00pm, EST
Friday, November 30th
iMac LCD screens failing en masse
A growing number of users are reporting an issue where iMac LCD screens are failing, showing a number of artifacts that include single-pixel lines spanning the length of the screen. An Apple Discussions thread regarding the issue has so far gained more than 80 posts, with the following case being typical: "It started out a 1 pink line, Then about 2 weeks later another 2 lines appeared. Every now and then when I start up they are gone but seem to fade in after about 5 minutes." Some users are reporting the progressive appearance of 50 lines or more.
Early indicators are that this is an issue with the display itself not the video card, as users have hooked the affected iMacs up to other displays which do not show the problem. iMacs that show this issue are generally falling into the following serial number range: W860****U2N.
A petition requesting that Apple address the issue has been established, with the organizers stating "We, the undersigned, request that Apple Inc. officially acknowledge and address the defect in their LCD Displays. The defect causes vertical lines (cyan/yellow/pink) to appear cutting through the screen and multiplying as time goes by. Unfortunately, the problem starts to appear right after the end of the one year warranty. This problem has been filling up the Apple's online discussion forum and with no possible solution. We are the loyal Apple fans and would love to see Apple show its appreciation by stepping up to this issue."

Users who take their iMacs in for service at the Apple Store are being quoted prices of more than $700.
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Right now, it sounds like everyone's doing the right thing... taking them in, getting them looked at and logged, and banding together. If it truly is a widespread issue, Apple will address it.
Its ironic that it started with a single line for me in EXACTLY the same place as in the pic and then added an extra dead line each week.
Apple replaced mine FOC as it had been into a store for repair a few weeks earlier. Needless to say anything that isn't user serviceable needs warranty cover and now I have Applecare on all new Macs.
http://direct2dell.com/one2one/archive/2007/06/19/17774.aspx
If it is happening within warranty period, it should be replaced by Apple without question.