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Current version by: mayer ,

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The most common problem with this series was bad capacitors. Open them up and examine the approximately 24 "cans" for swelling and/or leakage.
 
'''UPDATE 4/17/16'''
Here's how to replace the display: https://www.ifixit.com/Guide/iMac+Intel+17-Inch+Display+Replacement/889

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Original post by: mayer ,

Text:

The most common problem with this series was bad capacitors.  Open them up and examine the approximately 24 "cans" for swelling and/or leakage.

Status:

open