I used to have this problem, in PGR3 the GFX would just go nuts exacly like you showed in that photo, in Test drive and NFS it just froze... I strangly found that the problem was to do with streaming music from my PC o_O I noticed the GFX would only go nuts when the music track changed, so I used PGR3's built in music and I haven't had the problem since!!
I dunno if my units bust, or its a common problem... It explained why I didn't have any problems in PDZ and GRAW tho as I never stream music into that
But I'm gonna try and take it back in October, then if it fails again I can change again for the new revision hopefully hehehe