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First, check all electrolytic capacitors and replace those which are
blown or rounded. Next, if when it shuts down the green LED also turns
off, then on the controller PCB there's tiny transistor-like chip
U406. Remove it from the board and try to turn the monitor on. That's
reset circuit, you could live without it.
Try looking at the LCD screen at a sharp angle to see if ghost-like video can be seen during the 'off' time of the flicker.
If video is still present even though not that visible, then either the backlight or its power supply are failing.
The color problem could also be caused by a backlight lamp that is not ionizing completely.
I recently had the same problem occur on my LCD Panel and this is the response I received from ACER.
Thank you for contacting Acer America. I apologize for the inconvenience that you have experienced. If the green power on LED blinks rapidly, it means that the monitor is not getting any signal from the computer. It is possible that the monitor may have faulty internal component, I suggest that you send your monitor to a local repair shop to have it tested properly.
Respectfully, Acer America Online Technical Support
This reply has only historical significance since both are many months old.
Without making a few measurements no exact diagnosis is possible but based on your descriptions, the power supply has to have failed.
Kris' problem happened more gradually so whichever part that was marginal allowed a few starts before failing completely
Yabbit's failure was more immediate and this one would have been easier to find in a repair.
Switched mode power supplies can be as reliable (and are more efficient) as linear supplies that are much simpler.
But poor component quality can damn a supply to early failure much more certainly than in the linear supply.
It could be years before the industry realizes that it can't cheat on quality and still maintain a positive reputation.
Is it a new monitor or an old one. If it is a new one, you can call the service to fix it becasue that is a quality problem. If it is old, try to open it and check whether the menu button on the control panel is stick on the control board inside.