possible video card/logicboard problem? (pix)

I have a MBP from about '07-'08. I've never had a problem with it, until now. The other night it froze up and the screen turned into sort of 'inverted' colors, all trippy looking.

I forced it to shutdown, then went to start it up and it got stuck on the Apple logo/wheel screen. Before I proceded any further, I connected it via firewire to my Mac Pro and was able to mount it successfully and backup files, which means the hard drive must be ok, right?

I then read up on some discussions, a lot of them said to boot it up with the install discs.

While that seemed to be working, the same thing happened:

So I forced a shutdown again, it got past the logo/wheel screen then got stuck here:

So after a couple more install disc tries, it booted up. I used it for maybe 15 minutes and then the worst screen freakout I've ever seen happened, where it turned to crazy colors like the first image above and flashing irregularly. Now it won't get past the logo/wheel anymore.

My apple care has exceded 3 years. Any help would be appreciated before I bring it to the Apple store. Thanks!