Ok, so, I have a problem.

It's a display problem.

I succumbed to the "Oooh, shiney!!" trap that HP laid with their TouchSmart computers...and I got one last year for my birthday from my husband.  (To be fair, it works AMAZING with photoshop, PSP, and Painter.  Which is WHY I wanted it.)
The warranty, of course, expired in September.  Right before I decided to finally use those upgrade discs from HP to upgrade my computer to Windows 7.

Now?  If I run a program in full-screen mode, my display turns turquoise.  EVERY.  TIME.  Whether it's a game, or Windows Media Center (Where I watch movies, t.v., and Netflix).

Here are my specs, if anyone wants to give a whack at the pinata that is this problem:

Windows 7  Home Premium
Intel(R) Core(TM) 2 Duo CPU  T6400 @ 2.00GHz  2.00 GHz
4GB RAM
64bit OS

Display:
Mobile Intel(R) 4 Series Chipset Family
1695 MB Total Available Graphics Memory
32 MB Video Memory

Let me know if there are any other specs you need :)

On the bright side turquoise is a very pretty color.

 it is.  It's just a PITA to be constantly fixing all the time.

Have you tried HP website for troubleshooting? they have a live chat to help you.

 yup, for 4 hours, lol

makes you want to toss the sucker for one that works huh? I have never been sucessful with the upgrade path. I normally install windows 7 as a clean install and it usually works flawlessly.

 The first thing I'd check is whether you have  the latest (or indeed the Windoze 7 specific) graphics drivers.  This looks like a good place to start...

http://www.intel.com/support/graphics/intelgm45/

 I probably should have said I've tried the drivers.  :/  

sounds like a trip to the geek squad.

Did you try the drivers from HP, of from the graphics chip manufacturer?  Sometimes the vendor (HP) will have old drivers that don't work as well.  Just a thought.

That has been my experience as well Jcleaver.

Does it go 1) a "solid" colour with nothing else visible or 2) is it more like you're losing the red ?

The first thing I'd try is to reduce Hardware acceleration until the problem goes away, or it ends up at "Off".
If the problem goes away it's a driver issue related to doing video playback using overlay.
If you can't fix it via fiddling with the driver or driver settings, see if there's anything relevant you can tweak in the playback software.
Maybe see if you can allocate more video memory if it's configurable.

Normally I'd suspect a loose cable connection somewhere, but given that it only happens when you do something full screen, or playing movies, that doesn't make much sense.

I once had a similar problem and it turned out that the software wasn't compatible with the screen resolution I was using, I had to drop it down one 'notch' in the resolution.

You might try tinkering with the refresh rate as well. Make sure there's not some patch for DirectX that you're missing perhaps. There's a DirectX diagnostic that you can run. Under XP, its called dxdiag.exe  I would think that Media Center would be DX11 compatible but some games aren't and may require the latest DX9 files according to this info I found. I have no idea if that's part of your problem.

www.sevenforums.com/gaming/77293-tips-troubleshooting-game-issues.html

Try running msconfig, and disable everything in the startup tab.
Reboot and try, it could be related to an startup item. In particular the smarttouch software.

In case you don't know how to use msconfig.
http://netsquirrel.com/msconfig/msconfig_win7.html

Another thing is maybe the aero theme is creating a problem. Try a basic theme.
Btw im a pc tech, have been running a pc shop for 9 years.
I have worked on several of the smart touch hp's,everyone of them had video issues.
Most were fixed by disabling the smart touch(screen) software.
Other one's had to have the motherboard replaced (intergrated video)

Display:
Mobile Intel(R) 4 Series Chipset Family
1695 MB Total Available Graphics Memory
32 MB Video Memory

Not too familiar with laptops but the video memory looks a little low. You will need to go into the BIOS to up it to 64MB (or even 128MB if available).

Have you tried connecting to an external/different monitor?