How come the screen became so bad? It almost seems like it's melted. Has it been exposed to heat, long periods of direct sunlight, or something else it wasn't meant for?
I like these too, I have a 380ED. It works 100%, even the battery holds up to an hour of charge. I had fun reinstalling Win95 on it, and for the fun of it, I installed an Ethernet PCMCIA card and put it on the home network. IE3 still displays the Google search page, but little more.

But I made it show up on the network, so the hassle I had with the need to put files on a cd in order to transfer to it is not an issue anymore. I assume I will install Office 2000 on it, and use it for some typing. Since the battery still works, it's easy to carry around the house.
A later project will be to see if I can install Win98 on a CF card and make it boot from it through a PCMCIA card reader. Not sure if it will be possible, but I will have fun trying.
God luck with your 380. You should find a new LCD for it, it seems like there are some for sale on eBay, both brand new panels and used complete lids.