Color bars on screen!!
Did not drop or hit. Turned on and got these rainbow and black stripes on screen. IMG_0006.JPG. (gotta figure out how to upload pic from iPad!!!) Anyway it is a band of black and collored lines running vertical in landscape and horizontal in portrait about two inches wide. All apps, all the time. Restore no help and touch function works fine across the stripes.
I think you need to return your iPad to an apple store for a warranty replacement. Don't forget to backup first!
I feel your pain, I would be really upset if mine gave me problems.
NumbLock is right - the iPad will almost certainly need replacing, and you will be covered under your 12 month warranty from Apple if no accident has befallen the iPad. Either the LCD screen itself or, more likely, the video display hardware on the system board has been damaged. It's possible something has been dislodged or come loose, as I've seen similar graphical corruption effects from graphics cards when they're not quite fully slotted in on a PC.
Finally got to an Apple store. replaced iPad without question.