First, point of clarity, you don't have OS X 10.6 installed on your Powerbook. Max possible is 10.5.
If you have the original OS X disks that came with your system, you might run the Apple hardware test to see if it spots any obvious hardware problem. Insert the disk that says in small print on the label 'AHT Version x.x'. Reboot holding the alt/option key down. Choose the Apple hardware test, and when prompted, choose the extended test. While the extended test is running, you might push the command and L keys, to loop the test, as sometimes it can take several runs to find an issue. If you have either of the TechTool programs, they can do similar testing.
If the AHT says everything is OK, I would see if you can hook up an external display, to see if you have the same vertical streak issue. If so, it's a video hardware issue. If not, it's likely a screen issue. To see what's involved with replacing the screen, should you decide to do that, see http://www.ifixit.com/Browse/PowerBook_G4_Aluminum . Choose your system then choose display or LCD.