If the screen output changes while you move the display portion open and close, then it could be the cable that connects the display to the logic board. An easy test that costs nothing but the 10 seconds or so of time. They have been known to fracture in some cases through repeated movement over a long period of time.
If there's no diff, then it's the GPU. The repair program for the 2008's I "think" was for the 2007/early-2008 models with the dGPU, and that program expired back in December 2012, if I remember right. Current repair/replace programs don't involve the late-2008 units. So, yeah, time for a new one.
Look on the bright side: There have been significant performance and power efficiency improvements, even in CPU, since 2008. Faster. Better battery life. Repair-ability comparatively sucks, but not much you can do about that.