The flickering was really starting to bother me, so I returned the iMac for a replacement.
The replacement did not have the flicker problem, but it had a new problem:
A high pitched, high frequency noise almost like a dog whistle. The tone of the noise changes when you change the screen brightness. The noise disappears at full brightness and low brightness but anywhere in the middle there was this high pitched shrill.
Apple Support Forum Posting from other consumers.
I embarrassingly returned it, and the new one has the same problem but not as bad - despite the fact that the guy I spoke to done an instore setup of my machine and declared it had no noise.
This is a high pitched noise and very obvious when you change the screen brightness. I cannot work with the noise as it is extremely high pitched so much so that it's a relief to turn the computer off.
I am completely embarrassed to go back into the store AGAIN but I want my money back.
Can I phone AppleCare and get them to pick it up from my house? [I'm in the UK] The store is a 70 mile round trip + parking costs each time. It would save me time, money and feeling embarrassed.
This being my third iMac has completely taken the joy out of purchasing a new machine, despite the iMac being perfect for my needs.
I am considering going back to the old setup I had before: My 13" MBP connected to a 22" Dell monitor, mStand and Apple Keyboard.
I will say one thing - in all three iMac's I've went through the Magic Mouse has worked perfectly on all of them, and I'd really recommend the mouse to anyone.