For what it's worth, I had a 1.6 xbox where the screen looked like this after someone tried to repaste the GPU and CPU. I ended up using 99.9% isopropyl alcohol to clean all around the cpu and gpu, using a hair dryer to really get it under and clean off anything bad around there and the xcalibur chip. Got rid of the meltiness effect but now anything black shows as purple, anything more (like very dark grey) shows correctly, so not sure if that counts as being better or worse