That is really bad.
I have tried restoring it / updating the firmware - nothing helps.
I am pretty sure it is a hardware issue since I've seen similar issues with other devices - its the LCD that is at fault here and that needs to be replaced.
I read it in some forum here that it would go away with 24 hours of use - tried that - but no effect, with a full charge then drain and charge again - nothing.
So, I'll be sending it off to the dealer - who too thinks it needs repair / replacement.
Will let you know what happens in the next few days.