My client is experiencing this, but the bars are horizontal, not vertical. Everything worked fine until a few weeks ago. Here's what I did and what I'm guessing:
I first checked Device manager (no errors), reinstalled driver. Problem persists. Oh, and the cable is fine, since the client computer is here, on my bench, attached to a different monitor and cable, problem persists.
Then I installed Malwarebytes, and disinfected 213 files, registry settings, etc. of trojans and malware.
While I was waiting for the scan to finish, I found some references to RAM pairs not working and to an Acer E-Lock Management/AVG conflict. Acer monitor, but no E-Lock software, I uninstalled AVG, but problem persists.
I did remove one stick of a pair, but problem persists.
What did work as a temporary fix was to go to Display|Settings and just lower resolution, see the changed screen, but then say no, leave it as is. This removes the bars until... I open Explorer (XP Media Center SP3), Internet Explorer 8 or Mozilla Firefox 3.6, I get the bars again. And the longer I have those programs open, the more bars appear. All this makes me really think it's a virus/trojan because it's only these three programs, and it's always these three programs.
I did disable several add-ons in both browsers, but obviously, if Explorer is hit as well, this won't do any good, I don't think. Maybe, so I did it.
After using mbam, I am now able to update the PC, using Win Update, and have applied all patches, etc.
I then found this old 2008 MS KB
http://support.microsoft.com/kb/903251 which does mention the BSOD I was getting and the Stop error of PAGE_FAULT_IN_NONPAGED_AREA, etc., and then I went to Symantec looking for a specific HAXDOOR threat removal -
http://www.symantec.com/business/security_response/writeup.jsp?docid=2007-011109-2557-99 Negative. The article tells you what to look for in the registry and file system, and I did not find any of reg keys or files, so I think MBAM did the job, but there is some artifact left.
Where I am at now is problem persists when I open Explorer, Internet Explorer or Mozilla, and after a while, I get BSOD, referencing ialmdev5.dll and PAGE_FAULT_IN_NONPAGED_AREA, as written up in that KB above. The system is more stable now, not blue-screening all the time, I can login and open programs (except those 3).
I think I will ask client to use it for a week, as is, so she can back up her files (why does no one do this?), and then I will install XP Pro clean for her.