I managed the purchase and support of 20 TC1100's, and in the first three years we had them fielded I encountered this issue with 4 devices. It starts as an occasional occurence after rebooting, but eventually comes up 100% of the time when starting the computer. The checkerboard display will also be present in the BIOS configuration screen, and has nothing to do at all with the Windows Operating System - it's a hardware issue. The plug in jack that connects the keyboard to the tablet also takes a lot of stress from leaning the monitor up and down, and eventually can crack the motherboard right at the video card connection. The only fix for this is to call HP and have them replace the motherboard. This issue is a standard knowledge base scenario for them now (it wasn't for the first two tablet's that I had break, but eventually they figured out it was a common issue and told their help desk folks about it).
HP's main support document for this issue can be found here:
http://h20000.www2.hp.com/bizsupport...ctID=c00289731
On the good side, every device I have sent to HP for this problem has returned in two days - but they did wipe the hard drives every time.
Good luck!