It seems that the new iMacs, utilizing Intel processors, are stricken with an annoying errata
that results in the display becoming corrupted. Apple knows about this issue and has several dialogues going concerning the issue, which seems to rear itself in various software programs and therefore is most likely a software compatibility issue or defect.
In a research note on Friday, American Technology Research analyst Shaw Wu downplayed the problem and said he doesn't think any kind of recall will be necessary. "We believe the video glitch with Front Row can be easily fixed with a software update," Wu said.
One solution was to lower the desktop color depth, but that's not really a solution. Some people are upset to the point of returning their iMacs, which can be seen as a bit extreme considering it may be just a software issue. Nevertheless, quality is quality and perhaps better testing should have been done.