I've had a problem on the DR1000 with a black horizontal line that initially didn't go away with refreshes/reboots. This happened after a full drain of the battery. On recharging it slowly faded though and it was completely gone on about a 60% charge level.
Your problem sounds more serious though, but you could always check if a full charge has any effect (if it isn't already fully charged). Other than that perhaps try flashing the firmware and see what happens?
BTW Does the bug disappear when you turn off the reader?
Last edited by rvs; 06-20-2011 at 04:41 PM.
Reason: Added question