Yes, the card has been overclocked, but only using the "auto-detect" feature in the nVidia drivers. It set the clock to 500/950, and I didn't try it any higher than that.
The card ran fine in my system for 6 weeks, and I sold it to someone online. I took it from my system, packed it in the original packaging, and then put it in a huge box with plenty of packing. The guy who bought it said the box was in good condition, but when he put the card in, he gets that behavior. He even tried it in another system, with the same results. He runs his own computer upgrade business, and from talking to him on the phone, I can tell that he knows what he's doing.
The only thing I can think of is that one of us damaged it with static. But in all my years of working with hardware (was a bench tech at computer city, then compusa, and then head of IT for a medium sized company, and have been an avid upgrader on my personal machines), I've never had a problem like that with a video card.
He's going to RMA it to newegg, and get a new one (what a deal!), but I was just curious if anyone had any idea what might be the problem here.