1. Use Windows 7 System Restore to a day before.
2. Reload the OS.
I'd do item 1 since it's very safe and then scan with Grif's advice at link but it does sound hardware to me given the story. Grif writes at link:
http://forums.cnet.com/7726-6132_102-5098912.html?tag=posts;msg5099421
Bob
I have an hp pavilion dv7. The other night the screen bugged out and got completely distorted. Pixels shooting everywhere, and colors were a little off. I force restarted, and it still booted up all distorted, but i can now only run the computer in safe mode. It still operates fine in safe mode but the video is completely messed up. Any ideas?

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