I hope you can get a replacement. The error sounds identical to mine and when I sent it back they accused me of throwing it about! See my post on here about uk Sony warranty. The fact that yours shows a good picture for even a moment may indicate a software or some kind of cable issue.
@Conundrum - I noticed that too on my 600, I think it shows where the pages overlap, so the writing at the bottom of one page will show at the top of the next page but fuzzy, I hope you understand because I haven't explained it very well!