Wow! It certainly looks like a GPU going bad to me. Have you by an chance tried to reset the PRAM?:
1. Press and simultaneously hold down the following four keys during the startup process. You should do this from a cold boot. That is, after you have completely shut down your Mac:
COMMAND + OPTION + P + R
2. Continue holding down all four keys until one of the following conditions occurs:
a. About 20 seconds passes, during which time your Mac may appear to restart.
b. You hear the startup sound a second time.
c. The Apple logo appears and disappears for the second time.
3. Release the COMMAND + OPTION + P + R keys after one of the above three things occurs.
Maintenance Tip: It is highly advisable to zap the PRAM about every six months or so, in order to keep your Macintosh running smoothly and efficiently.
Resetting the SMC may possibly also help:
1. Shut down your machine.
2. Hold down the power button for about 10 seconds.
3. Release the power button and wait a few seconds.
4. Restart your computer.
5. If the problem still persists, shut down your machine again.
6. Unplug the power cord.
7. Wait about 15 seconds.
8. Reconnect the power cord.
9. Wait another five seconds.
10. Restart your machine.
I hope you find the above info useful. :)