Screen goes grainy and BSOD

I started to have a problem today, my screen suddenly starts to get grainy and i get an BSOD.

After alot of rebooting, system restore and repairs i was able to start in safe mode (Yea, not even safe mode was starting up).

In safe mode i removed all nvidia drivers and was finally able to start up in normal mode, without problems. As i did that, vista automatically started to look and install a video driver for my Geforce 8800gtx and asked for reboot. I rebooted and the same problem happened again.
Note that i used an fresh account without additional programs on start up for the test and it still gave that problem so long as the drivers were installed.

Could this be a hardware problem? How can i gather more information to help solving it?

This is very important and rather urgent as that computer is my main workstation and i use 3d programs which need those drivers.

Thanks in advance.

its difficult to say mate no one likes jumping straight in and blaming hardware especially on forums but id say if you have the issue even with generic drivers it could be your card

waht about if you clean boot How to perform a clean boot procedure to determine whether background programs are interfering with a game or a program that you currently use make sure nothing external is conflicting

Well i would, but now i am not getting any image. From the start of the boot to the end theres nothing onscreen but check cable connections message. I tried switching cable and everything but nothing worked. I even heard the windows start sound but no image... looks like it really is a hardware issue...

I`ll have to go to an technican/store for further tests but looks like my 8800 gtx died, only 1.6yr after i got it...