We've got 12 vertical lines of various colors on ours so far. Also, this 17" Feb. 2006 iMac stopped running OS X a few months ago. Reformatting and reinstalling OS X helped, but the OS X partition failed again in short order. Ironically, this iMac runs Windows XP beautifully. My wife uses Windows for work, so this suits her fine.
Go to YouTube and search for "imac lines". You will see many others who share this display problem. We have a Samsung panel connected to ours, and there are no such lines on the external display.
Our iMac G5 lost its logic board, so I'm not a big iMac fan anymore, especially with super-gloss displays. My PowerMac MDD is still going strong, though it's still as loud as ever despite changing the power supply. My MacBook lost its battery after 125 charge cycles, but my MacBook Pro (early 2008, matte) has no issues.
If the line bothers you (of course it does), get an external display. I know you are bummed about this issue, so spend a little on a display (and adapter).
It sucks that this happened, and paying Apple for an external display adapter is salt in the wound. Still, you'll forget about it soon enough once you get to work on your new, and likely bigger, display.
Best of luck.