You can replace the lcd screen although you do need to be careful. You camera has a flash capacitor that contains 300 volts and if you short it out you can easily fry the camera circuitry. You can check on ebay for an lcd or call fuji usa. I will warn you though their parts department isn't the most helpful.
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As long as the pictures look fine it is something going on with the lcd display.
If it was taking pictures the same, it could be a special effect that is turned on or the CCD is bad. It sounds like the LCD display is bad. Some cameras can be repaired at a reasonable price with a new LCD display.
Have you replaced the batteries in the camera? That might take care of the problem.
The price to have the LCD replaced would probably cost 75% of a new one. If you can do without the LCD and it downloads the pictures to your PC, at least you've got something. That camera has a viewfinder, so you can still take pictures, right. Sorry about the bad news.
The camera will still work fine. The screen is only for framing your pictures and reviewing them. It will be hard to take pictures that way. Just get a new camera. It will be cheaper than repairing the screen.