I called applecare and they acknowledged the problem so without much talk, they labeled my powerbook DOA (wk 40) and were to send out a replacement unit. I told them that I have apple stores close by so the rep called the store and had everything arranged. I just brought my old powerbook in and walked out with a new one.
The new one has the same problem but this time I'll just deal with it. I really have no other solution (need mac for editing, 17 too big to lug on site), so I'll wait until a fix come along. I guess for the time being I'll refrian from getting closer than 24" to the display. The good news is that apple seems like they're admitting the problem and the next logical step is to provide a fix.
The lines may not seem obvious to the normal eye, but a quick comparision with the 17" really shows how flawed the screen is. Plus when I see scan lines during editing, it usually means a bad compression rate so it bugs especially for me.
This isn't a BMW with a screw hole in the arm rest, its a BMW with permanent bird poop on the windshield. You can choose to ignore it, but it doesn't sit well with me to pay top dollars for a flawed product. I expect it from emachine, but not from a "pro" company charging "pro" prices.