My instant reaction would be that the video card has completely killed the motherboard and it's refusing to power up due to physical damage, or some kind of error/power problem - which is serious, because it could be electrically unsafe in its current condition. With the issue you had, it's probably due to overheating (causing permanent damage)
Thing is, I would have expected much worse visual distortion if it's due to video card overheat, especially since the entire desktop is composited by the video card. Which leads me to think that you should go see to an Apple Store ASAP and get them to open it up