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Thanks for the suggestion but it's allready on 32bit-colour, and unlike others i have only 1 monitor in my device manager.

Below is a screenshot showing this before the problem has occured:

 
Has any one made any progress?
I'm having the same problem:
late 2007 iMac running XP, and the glitches will happen even if not doing anything that is graphics intensive.
I'll try and take a screenshot next time it happens
 
It seems i don't have that problem anymore :D i installed vista (wanted dx10) and it only happened ONE time like long long time ago. I play COD 4 and World in Conflict, i just make sure to spin up the fans before i make the switch to keep it cool.
 
I've made a tiny bit of progress on this, but it's only a faster way to fix it.
If you go into Standby mode and then get out of it the screen is no longer messed up, so at least you don't have to completely restart it. I no longer think that the 5 monitors thing has anything to do with this, I've messed around with video drivers and I noticed if I used laptop drivers then the 5 monitors showed up, but if I used the device manager to install the desktop ATI Radeon HD 2600 XT then only the plug and play monitor showed up, like in TofaPrune's screenshot. I'm pretty sure the 5 monitors thing is just a laptop video card driver thing.
 
Yeah, that does work thanks for the tip!
I also now tend to use SMCfancontrol (before restarting into bootcamp) to boost my fans up to about:
CPU - 1200rpm
HDD -2400rmp
Optical Drive - 2400rpm
which seems to make the problem occur a lot less :)

However saying that, it is still a problem - so if anyone has any further progress with finding out what causes this (and a possible way it could be fixed) it would be greatly appreciated !
 
Any piece of news?
Has anyone tryed with Windows 7?
I'm a bit mad, it's been a while and there is no solution...
 
Solved... i think

It's been a while..
I've given up and blamed it on bootcamp and drivers but then
I modded the latest desktop drivers for my imac and it seems to be working
fans are on 2000 rpm except for ODD which is 1400. its not that loud and it gives me peace of mind :p
 
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