Computer issue needs verification. Distorted screen/bad drivers. /w video

First off, this is not just another case of "Help me fix this problem i have been having..."
This is not the case. I have a problem, which cannot be solved with ordinary methods, doesn't make any sense (to me, at least) and which i cannot even identify properly...
So, my dear tech gurus, im asking for your help.

Also, i have a video of really low quality (320x240), but with epic music on youtube. )
I suggest you go and watch it now..

Watch It Now!!!

So after viewing the video you propably know what problems im having,
but if you didnt watch it, here's a list.

When PC boots normally i get horizontal groups of colored bars over the screen.
Soon afterwards (at the splash screen, maybe) the PC freezes. (cannot hear login sounds when type in password, keyboard lights inactive - scroll lock etc.)
Cant be turned off with button either.

When PC boots in safemode i still get those bars, but the actual image the PC is supposed to display is partially visible.
PC can be operated flawlessly (but no graphics applications, possibly because drivers not loaded)

When i start it up, it usually offers the option to run Startup Recovery, but when recovery does its diagnostics, it shows error called BadDrivers, which it cant fix. System Recovery also cant fix this.

If i run the PC in safe mode and remove/reinstall the drivers to a different version, the problem still persists.

Please, note, that Repair Install is not an option. (i lost my windows key, i would hate to ask, but if there is no other option i might have to use the notorious Master Key... <last, no really, LAST resort )

Im almost certain that this issue is caused by the hardware on pc and not defective screen/cable.
Because: the screen overlay shows perfectly (adjusting colors, saturation with buttons on the monitor),
pc shows an error in diagnostics.

Checked the Event Viewer, but it was too cluttered, i couldn't find a thing.



Im stuck with my 5 years old Dell Latitude D510, and i cannot find another fix on the web,
or even a similair problem, except for ATI cards dying, and showing green vertical bars or something...
I really need your help to identify/find a fix for this problem.

What do you suggest?

 

It looks like a graphics or computer memory issue, or the monitor. You can eliminate the monitor as a cause by trying it on another computer, or trying another monitor.

Next I would test computer memory using Memtest86+ available here: http://memtest.org/

You may also have a problem with drivers, but the graphics issue is occurring before Windows starts to load.

 

As i said, its confusing...
Startup Repair diagnostic shows BadDrivers error,
but screen is distorted in BIOS and POST.
Trying the monitor on different pc is sadly not an option,
but i might try the Memtest86+ software...
But will the 32bit version work on 64bit OS?
...
Nvm, i'll just check it out...

 

the G-word is rude? Oh well, i guess i have to think of some polite way to name things related to pirated software. Excuse my inadequateness

 

Erm, isn't the word Curse (in plurual form) also prohibited then, because its used for cursing... erm, saying notnicethings.
And i didnt even imply you to suggest it, i even suggested you to not suggest it to me, because in near future, i might have to obey the suggestion if it turns out that repair install is only way, because there isnt an app that shows your license key...

By the way, thank you sir, for utterly confusing me...


Back to the topic:
i cant get a CD to write the memtest .iso to, and haven't got a USB flash at my disposal either,
so i wont be able to use bootable software for the following 2 days...

Any alternate suggestions?