That looks like a fault, primarily as the mouse pointer is OK..
If you have VRAM fitted then remove the module and try again.
If you don't have VRAM fitted then try changing your system RAM SIMMS.
Failing that your VDC20 chip could be duff.
I think TC is correct. I've seen similar artifacts with a dead VRAM module. Have you removed the original CMOS battery? If not snip it out sharpish and check for leaky battery damage.
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