> Any thoughts?
1. Try swapping out your video cable.
2. Did your benefactor give you the Apple Hardware Test disc that shipped with the iMac?
If so, since a video issue is certainly a possibility (if not likelihood), run the "Extended Test" in loop-mode (control-L) for at least 5 loops.
If not, tacit, who has refused a "gift" machine that did not come with its discs as being a non-gift, will probably post a rant (not that his aforementioned sentiment doesn't count as one).