Update
So I called apple care a couple weeks ago and we went through a couple steps on trying to fix the display. Nothing worked and an appointment was set up in my local apple store to have them look at it.
I take the computer into the store and the 1st thing the genius technician says is "wow, I've never seen anything like that before". Soon a crowd of these technicians huddle around the computer saying "man, that sucks" etc. So they take a look at it and determine that its the backlight, LCD inverter and possibly the LCD itself - "a major repair".
So I tell him this is the 2nd "major repair" for the computer and its only 8 months old. I said that the computer is used for my business and I had concerns that if this happens again and I am out of warranty then it could cost at least $1000 to fix. I asked for a replacement. He said no but asked if I wanted to speak with a manager - so I said sure it couldn't hurt. She was on the fence with giving me a replacement but asked the genius what he thought and he said no. So she went with his opinion and said no replacement - they would fix it.
So I reluctantly said OK, go ahead and fix it. I told them that the computer was used for my business and I needed it back in a timely fashion. They said it would take 5 days to fix. I asked if they could give me a loaner or something and was shot down. They said if I went to best buy it would take 3 weeks to get a computer back from repair. I said yeah, but I could have bought 2 computers from BBY for the price that this iMac cost me.
Anyways, 7 days go by and didn't hear a word from anyone. I call over to the store and they tell me that the replacement LCD that they had shipped in was defective and that had to be replaced. They got that replacement that day and was scheduled to be installed later that day. Indeed, it was fixed that day and I was called to pick it up. I go to the store and they bring the computer out of the back, ask me to sign some papers and walked away. I said wait a minute, can you plug it in so I can see what it looks like? After setting it up, it booted up fine and the screen looked good. That was until I got home later that night where I got to see around 8 dead pixels and some small scratches under the glass. I then began to catch up on some work and maybe a hour into it the screen began to flicker on both backlights and got some vertical lines going across the screen. I was able to fix that problem by turning the computer off and pressing cmd+opt p+r
http://i186.photobucket.com/al...24/ATOT/1deadpixel.jpg
http://i186.photobucket.com/al...4/ATOT/1deadpixel1.jpg
http://i186.photobucket.com/al.../ATOT/2deadpixels1.jpg
http://i186.photobucket.com/al...24/ATOT/Scratches1.jpg
It was too late to call the store and apple care was closed for the night. The next day I called and was pissed. The technician apologized and wanted to set up another repair in the store. I again asked for the iMac to be replaced and was told that this was only the 2nd issue with the display and they would replace it on the 3rd. This time I was able to get an in home repair so that I didn't have to lug the computer through the mall to the apple store.
So I'm still waiting for this repair to be done when I read this article on Hard Forums.
http://www.hardforum.com/showthread.php?t=1402550
So these issues are pretty common in iMacs and people are starting to bring lawsuits against apple. I emailed the apple care rep that I had been speaking over the phone with that again I would like the unit replaced or I would join the lawsuit. I mean, c'mon 3 major repairs (LCD twice, video card once) in 8 months is a little ridiculous.
Cliffs:
Bought iMac July 2008
Video card was faulty and replaced
February 2009 - Backlight/LCD broke
Asked for replacement - denied.
Unit fixed in local apple store
Bring computer home and has several dead pixels and vertical lines through screen
Asked for replacement again - denied
Set up appointment for in home repair
Read article as issue is widespread in iMacs
Lawsuits filed against apple
Ask for replacement again or will join lawsuit