MB Pro graphics glitch. Failing GPU?

[rulesaremyenemy]

System:
Macbook Pro
2.3ghz core 2 duo
Radeon x1600
OS 10.6.4

I'm seeing a severe graphics glitch. At first I attributed it to a VM, but it has started affecting my whole system. Repeated reboots will eventually clear the issue, but it will trigger again when I boot up a VM, watch a flash video, or do anything GPU intensive. This doesn't happen every time I perform these actions so I have had difficulty finding a specific cause. Any help would be appreciated.

Screenshot of the issue

 

[Chemical1]

Are you running Flash 10.1? Seems similar to the problem I had running Flash 10.1, my problem went away when I went back to Flash 10.0

 

[nwcs]

On my old Santa Rosa MBP 17 there was a known nvidia graphics problem that manifested like what you're describing. Except rebooting only now and then fixed it. It required a logic board replacement from Apple.

Thought I'd add that the genius guy said the problem is when the chip got too hot it would do this but I found it was getting progressively worse. Apple had extended the warranty to cover this exact problem. I think your only solution is the logic board replacement.

 

[alphaod]

Seems to be a common problem with that GPU.

Found this thread, but not sure if it has any fixes:
http://discussions.apple.com/thread.jspa?threadID=1697470&tstart=0