LCD/Inverter Board Issue. Get a new Macbook?

My white 2007 macbook has had a nice 3 year run. Sometime along the way I damaged the LCD display with a drop, which now has a black spot along the top of the screen. It's understandable to me that this is not covered by AppleCare. Shortly thereafter the inverter board started to give me problems. Now, the backlight will only work after the laptop has "warmed up" for a few minutes, and even then it only displays properly when the lid is at certain angles. This is much more annoying than the LCD black spots, because it literally means I need to wait to use my computer when I need it.

*My question is whether or not the inverter issue is treated separately from the LCD display as far as AppleCare is concerned, or might the backlight issue be stemming from the LCD problem which was my fault?*

If they are both not covered then I'll be considering, by necessity, buying an entirely new macbook. This brings me to question section two: *Given the lcd and backlight issues, is there a market for broken macbooks? Does the apple store offer any kind of recycle discount on laptops (broken or otherwise)? Is there a discount for Macbook users who are continuing to purchase macbooks?*

Obviously I'm trying to figure out what my cheapest option is. I would fully accept my current Macbook as is with the cracked LCD but definitely not with the faulty inverter.

Any help would be greatly appreciated.