If the image remains, chances are it's the gpu, and hence SKY's recommendation.
there's a chance, maybe, that you DX has been corrupted, causing vga memory to not clear itself. You should be abel to confirm this by going back to stock...issues? Re-install DX, but please do this AFTER removing vga drivers...before re0installing vga drivers, update DX, then install vga drivers.
If that should fail, then I'd look at an OS install.
Image onscreen points to vga issues, IMHO.
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