Before you replace the monitor, you should probably rule out the possibility that your video card is causing the issues. I THINK that you should be able to test it just by plugging in an external monitor to the back of your laptop and seeing if it looks OK. If you plug it in and it looks fine, I'd bet the screen is your issue.
As long as you're not afraid of taking a few things apart, replacing the screen won't take too much. The trick is just making sure you get the right part. Once you figure out what you need, just dig around on eBay and you'll probably find some for decent prices (probably in the $150 range). The actual replacement will involve removing the keyboard and a few screws, but that's about it.
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