I dropped my IPAD 2 and now the screen colors are all messed up - squiggly lines. Does this mean the LCD panel is busted?

Very likely.

Or else something else internal was damaged in the fall.

Take it to Apple and purchase an out of warranty replacement.

Allan

Some iPad users have been able to revive their dropped iPad. Turn the iPad over and give it a HARD SLAP on the back. May take several slaps.

dropped iPad

https://discussions.apple.com/thread/4474708?tstart=30

Apple's Limited Warranty http://www.apple.com/legal/warranty/ for iPad excludes coverage for damage resulting from accident, disassembly, unauthorized service and unauthorized modifications.

The warranty will apply to the country of purchase. And if there is a problem needing repair you have to return it to the country of purchase.

Out-of-Warranty Service

If you own an iPad that is ineligible for warranty service but is eligible for Out-of-Warranty (OOW) Service, Apple will replace (Apple doesn't repair) your iPad with an iPad that is new or equivalent to new in both performance and reliability for the Out-of-Warranty Service fee listed below. (The replacement will most likely be a refurbished iPad in a brown box, however, it has a new screen, back and battery.)

A $6.95 shipping fee will be added if service is arranged through Apple and requires shipping. All fees are in US dollars and are subject to local tax.

Certain damage is ineligible for out-of-warranty service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications. However, an iPad that has failed due to contact with liquid may be eligible for out-of-warranty service. See http://support.apple.com/kb/index?page=servicefaq&geo=United_States&product=ipad

Make a Genius Bar Reservation

http://www.apple.com/retail/geniusbar/

You may can get the iPad repaired at 3rd party repair sources for less $, however, any remaining Apple warranty will be voided.

iCracked - Broken iPhone, iPod or iPad

http://www.icracked.com/

iReVamp Electronics Screen Repair ($99)

http://www.irevampelectronics.com/ipad-2-broken-glass-screen-repair.html

iPad Repair & Screen Replacement Services

http://www.ifixyouri.com/16-ipad-repairs

RepairZoom iPad Repair

http://www.repairzoom.com/ipad-repair.html

Mission Repair

http://www.missionrepair.com/Apple_iPad_Repair_Services_s/431.htm

iGadgetResQ

http://www.igadgetresq.com/ipad-repair/

Do It Yourself iPad Repair

http://www.ifixit.com/Device/iPad

 Cheers, Tom 😉

Genius! Dropped my public school issued ipad and thought I was toast! Your solution fixed it! Thank You!

I just did this when I dropped my iPad only about 12 inches onto the floor. After consulting with Apple and being told I would need to replace my screen or get a replacement iPad both for $250, I decided I had nothing to lose by trying my idea. While the iPad was off, I gently but firmly tapped each side on a hard surface. I then turned it back on...and magic! All the correct colors were restored. I think that the drop must have loosened the metal back/sides or things shifted. internally We'll see if this is a permanent fix, but it seems to be fine!