Segmented? Something like black stripes across it? If that's the case, you need to replace it as some of it's controll circuitry is broken.
What about the pixelation?
A comon cause is using a small wallpaper picture stretched to fit. Try changing your background.
Are your characters pixelated? What about the various windows controlls?
If you connect an external monitor, if physicaly possible, how is the image?
If the image on another monitor is bad and can't be made beter using the various display controlls, it can point to a faulty video component. On a laptop, the video "card" is part of the main board and can't be changed, so you'll need to get a new computer.
Electro, May 2012