Last week I dropped my ipad. As a result, there was no visible damage but my screen began reflecting all weird colors. Although the apps all worked I couldn't really use them because they were in these weird background colors. Apple Care gave me a $270 quote for repairs and Best Buy told me it was worth nothing. On my way home my wife dropped it again but from about 4 feet on to a tile floor. Boy, I thought that did it. Instead it now works perfectly. So, if you get the same weird background colors my bet is that the video card or the connector came loose inside the ipad. Since it is virtually worthless in that state my suggestion is to consider "dropping" it or banging it to get the loose part reconnected. Fortunately it worked for me; it might work for you.
I have heard this a few times, apparently the ribbon connector to the screen comes loose very easily.
Thanks for that - it worked!!!! Just had to tap it lightly on the desk and it came back to normal. The initial drop was minimal. I'd tried rebooting and also checking out settings but the simple bump did the trick!!! Too easy!!!!