Guys. New to forums. Just to add my weight to this.
I bought my 21.5" Intel iMac in November 2009 at Apple Store, Liverpool One (only 18 months ago but out of warranty and no AppleCare).
I've had a blissful time with it, extolling its virtues to my friends who have PCs. I use it a lot for photo editing with Aperture. Whilst showing one of these friends some pictures in full-screen mode of a recent trip we took, we both noticed a series of grey smudges in the top-left corner of the picture. I at first thought it may have been dirt on my camera sensor, but it would have to have been the almightiest of sensor fouling as it covered ~3" square of screen! Anyway, I tried the usual things like powering down and back up again, however still the same pattern of smudges. Tried taking off (carefully) the front plastic panel and cleaning both it and the LCD underneath, to no avail. It has now dawned on me that it can be nothing but the LCD. I noticed that it has occurred in a place spot on the screen where there's a fair bit of heat being generated behind - could be a cause? It is extremely distracting when I'm working to have this catching my eye in the corner of the screen.
I'm in a position now where my nice machine which I've been bragging about could now be failing in the display department. I've really looked after it as well, powering down when I don't use it, it's in a place away from humidity and direct sunlight etc. I'm just hoping now that it doesn't get any worse, as I know what the likely response from Apple would be - "not under warranty, go away".