Although its possible for graphics processor failures to cause vertical lines, they more often create horizontal ones. The first culprit to check for a vertical line problem is the LVDS cable, which it turns out is not that expensive a part (not counting all the work there is in getting to it). To verify this, I would gently flex the cable while the iMac is open and operating, and see if the lines get better or worse. It may also be that the cable itself is fine and just a few of the connector pins at either end are intermittent, in which case it just needs reseating.
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