After skipping Mountain Lion, I thought I would give Yosemite a go on my 27-inch Late 2009 iMac, (AMD) ATI Radeon HD 4850 512 MB, 8GB RAM.
The hope was that perhaps updated graphics drivers might fix the issue, but alas, it came up with a white screen, and after booting into safe mode the GPU errors were back in the logs.
For my card, I removed AMDRadeonX* ATIRadeonX* AMDRadeonV* kexts and Driver.bundles from /System/Library/Extensions, leaving the AMD4800Controller.kext and rebooted. At least my system came back up, but the initial load, and the login window were extremely slow.
Once up and running, the Chrome browser had continuous page repaints and was basically unusable, and my info.plist hacked version of Skype 5.1.60.947 would not even run. I was also getting a lot of random page repaints in finder windows, they may have been related to mouseovers. I did find reverting to google-chrome-34-0-1847-116 was workable, but no Skype version would allow an image from my iSight to display. I fritzed around with it for a few days, but in the end, gave up and went back to my trusty 10.7.5 Lion. Apart from the other issues, what was the point of upgrading? Also don't like using App Store for software updates, and the stupid stock notifications don't recognise mutual fund symbols.
My iMac is now 5 years old, it originally cost AUD$2,500, and it looks like Apple will never do a recall for this graphics card. I really don't have the money to upgrade, but if I ever did I would probably get a Mac mini i5 16GB RAM and a good 27-inch monitor, maybe AUD$1,500 all up. Wonder if I can use this POS as a monitor?
This is basically a poorly designed unit, the way the logic board, gpu, cpu are all jammed in together with bad solder and no proper ventilation. BTW there was a recent update to SMC FanControl, can't see a lot of difference....