Yeah, reflashing was the first thing I thought of as it really looks like the display drivers are corrupt. But, the reflash did nothing.

One thing I noticed that was weird before it happend is this. I used it for almost 4 hours last night after I loaded VNC viewer (really cool by the way, was messing with the wife while she was on her PC for about an hour before she figured it out). And, I have been using it to surf the web for the last 4 days (a lot). But, last night, it was getting hot in the upper left hand corner (would like to know where the chip is for the wifi, I suspect it is in that area). It was also dropping the connection so much it got annoying, I was only about 15 feet max from the access point. Anyway, this morning after leaving it in the charger all night, that's what I got as described above.

I have played with it for a while now and it really seems to me like the drivers are bad. It will display B&W pretty well, but anything with color has the steaks and is almost unreadable. Not sure if I will be able to get a new one as I won this at a charity event, I guess I made a bigger contribution then I thought. Oh well.