Hi,
I'm just going though this exact same problem on an iMac 27inch i7, bought at the end of 2010.
At first the screen flickered a little. Then it flickered, and the left half of the screen would be much dimmer.
I took it to the Apple store and explained it was a display issue. Their diagnostic showed nothing wrong with the machine -- however, the diagnostic does not test the display. While there, the screen flickered a little.
So they replaced the logic board and the video card, all under warranty.
I take the computer home, start it up and the same flickering problem continued. Only now, it would occassionally black out entirely. This was annoying, plus the fact that the Apple tech people had scratched the case of the computer.
I went back to the Apple store. The problem is much worse now, so it's not hard to replicate at the "genius" bar.
Now they are replacing the whole display. It better work.
The whole process has taken 3 weeks. Now they have the part in stock (the new display) but say they won't be able to get to my machine for 5 to 7 days because of other repairs waiting.
It's quite disappointing.
NOTES:
So, if your screen flickers and greys out -- first they will try and replace internal hardware, which is likely a waste of time. Try and get them to replace the display right off the bat, or try and get a new computer.
Good luck!
I'll update when my iMac finally returns.