Possible serious Imac problem

Hi

I am having what seems to be a very serious problem with my imac and cant find any similar stories online so hopefully someone here can help.

I have 20.5" intel core 2 duo imac (2007-2008 I think). I have had no issues at all and suddenly today the screen had a strange moment with a flash of coloured squares/interference then froze so I had to hard reset.

The mac rebooted ok but on after selecting user and logging in the same happened again.

Now I have a badly flickering grey boot screen which eventually just goes to solid blue. Sometimes the mouse pointer appears and works fine with no interuption from the static.

I am not able to boot safe mode or from a disc.

If anyone can help I'd really appreciate it.

Here are some pics of the macs screen issue.







Thanks

Any idea how much repairs would cost? my applecare has ran out and I was hoping to by a new imac this year but this one has all my work on it foolishly not backed up.

Maybe a stupid question but is there anyway to salvage data from the hard drive without repairs?

Well that's some good news. Any particular type of enclosure needed to work with the mac hard drive?