LCD 3.2 - Is this a bad display or am I doing something wrong?

Hi everyone,

I've been trying to get this Itead ITDB02-3.2 screen working for over a month now.
I believe I have a bad screen but want to run it by this community of more experienced people.
The image displayed is terrible with artifacts everywhere.

My setup:
Arduino Mega 2560
ITDB02 Mega Shield v1.1 (kit which I assembled)
ITDB02-3.2

12vdc 1000ma

Tests:
Itdb02_graph16_bitmap
Itdb02_graph16_demo

I figured I may have wired something wrong on the v1.1 shield.

When I contacted Itead, they recommended I use the v2.1 shield, so I purchased one.
(They also mentioned that if its still a problem they will replace the LCD)

I just received the v2.1 shield the other day and I still have the same display problems as above.
Itead also recommended I try the UTFT library.
Same problems:

I contacted Itead a couple days ago, and am waiting to hear back from them.
My project is really falling behind.

Any ideas what is wrong?

Many thanks.

Designed for 5V ? or is it a 3v3 version ?