The 5-year old Dell suddenly began doing some very odd things yesterday after I had switched it off (yes, I did switch it off by hitting the wall switch...), and then started it up again a few hours later.
I'm not sure if this is useful now, but when ever something changed on the screen (i.e. selecting & deselecting lots of icons by moving the mouse around the desktop, opening/closing windows, accessing the Start menu etc.), flickering lines almost like static would appear on the screen, and if I opened/closed windows too often, then the screen would just go black for a bit. I also noticed that there would be flickering pixel-sized red dots on the desktop (but if I moved the mouse over them, they would vanish as if the mouse were on top of the dots).
This got progressively worse, and I eventually got a BSOD after moving the mouse a lot suddenly:

Eventually I opened up the computer, and found that some of the capacitors on the graphics card seemed to have some flakey stuff on them and they were bulging out on top...so I assume this is graphics card related (btw my monitor plugs directly into the graphics card):

So what I'm wondering is:
a) from the text/pictures above, does it look like the graphics card is the problem here
b) with a total budget of $100, what would be the best card that this computer could handle (it's a Dimension 8300)?
Thanks in advance for any help.