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The fact that some of the displays are "perfect" leads me to believe the problem is with the software rather than the hardware.

Wait. He says he's got a working Rio Receiver. Meaning, it doesn't have display corruption.

If the receiver.arf file were corrupt, he would see the problem on all the Receivers on his network, not just the one. So it can't be software.

I'm of the opinion that it's something in the display module, as was posted by Peter. Laserfan, what makes you so certain it's not? You said you were convinced. You also suggested swapping displays with the "good" unit... did you try that?
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Tony Fabris