My FLip Ultra's screen shows
Sounds like the problem is centered around the LCD display on the camcorder itself. Unfortunately, there's not much that can be done to fix this. If the Flip is still under warranty, you can try to ship it back to the manufacturer for a repair/replacement and I would recommend finding out if that's at all possible FIRST AND FOREMOST!!! I hate to say it, but these camcorders were not made to last long at all. Dropping them from as low as 1 foot could cause it to break for good, even placing them down too hard on a kitchen counter could loosen the internal components so it no longer works. They are (IMHO) cheap in every sense of the word and it might be better to just purchase another Flip, or save up and upgrade to a higher quality camcorder. If you're feeling brave and the warranty is expired, you can try to CAREFULLY disassemble the Flip and find the wires going to the LCD screen to see if they are loose or cut. Or you could try LIGHTLY tapping the side and top of the LCD screen and see if that fixes the problem. If at first you don't succeed, get a bigger hammer! haha j/k You could also try calling Flip's tech support at (888)222-6689.
Personally, I'm in love with my Samsung Full 1920x1080i 60hz HD camcorder I got for only $300 (about the cost of 2 Flips) with touch screen, time lapse, 20x opical zoom, photo IN video, youtube ready video, etc, etc, etc. Talk to your local electronics store (BestBuy, Circuit City, etc.) for their recommendations on a "inexpensive" camcorder, but avoid the term "cheap" as it implies low quality manufacturing. I'm not trying to sell you anything, but just showing you that for just a little more, you can get something that will LAST!