Thunderbolt Display on iMac - Major Picture Distortions Periodically, Ports Disabled

I was out of town for a couple weeks, when I returned and booted up the iMac, my Thunderbolt display went haywire.

At first, there was zero picture. After reconnecting, I got a picture. But, every couple of seconds or so, the picture would severely distort, showing tons of squares in random intervals... very similar to what some may see on their TV when the cable signal gets weak.

The display will then resurrect, then repeat this every 1-2 seconds.

Interestingly, after reconnecting a few times - or sometimes even rebooting - the picture will stabilize and everything is fine and I can work all day with no problems.

This morning, it did the same thing and I got it working again. But, then I also noticed that the ports on the back of the monitor seem to be dead. And, earlier, I tried to record something in ScreenFlow and noticed that the program wasn't detecting the built-in webcam either. So, I guess the camera isn't being detected anymore either.

I bought this display in July 2012, so I don't *think* this is a first batch unit.

Any ideas?

I'm using the display now. The picture is fine, but the ports are dead. But, you never know what will happen when I wake up the computer from sleep in the morning.