T500 screen flicker using the power adapter

[cachong]

Hoping someone has experienced and resolved this issue.
Yesterday I noticed that my T500 screen was flickering.
The screen is a WSXGA+ TFT.
The laptop has integrated graphics.
The laptop is one month old.

The flickering is not on/off type.
It is a weird distortion where the screen image shifts to the right about 3mm and then back to normal.
It does this for an instant but with no apparent consistent frequency.
Sometimes only the bottom half of the image does this, sometimes the bottom quarter of the screen other times the whole screen.
It is very annoying.
I did a little experimentation and it only flickers this way when the power adapter is plugged in.

On battery power the flickering disappears but I just noticed an odd flash on the task bar that reminds me of the image you would see as you were adjusting the tracking on a VCR and the white distortin band just disappears below the bottom of the screen.
This is not consistent.

Has anyone any suggestions?
Loose LCD connector?
Defective LCD?
Out of date driver?
????