Some bad news. The device started again to display graphics. Poped it open, removed the white ribbon, connected it again, still the same problem. I have no doubt that the problem resides in there since when I completely remove the ribbon, the screen went all white and when I plugged it back in the colors started to show.
Unfortunately there must be something wrong with the ribbon or the other side of the connector (side of the touchscreen) but I can't unscrew the screws since I need to have "super duper extra tiny" screwdriver but I don't. Anyway, I also had problems with the unit not turning on recently or not charging so I decided to ship the unit back to Coby to repair both problems. Let's hope they don't argue that because it is rooted and has the market on it, it voids the warranty. I wish I could have remove it first but without a display it's not an easy job.
I should get it back in 6 to 8 weeks.
My wife will really miss it since she's in maternity leave and was using it as a ebook reader and to play Solitaire
The only good thing I can see about having to wait 8 weeks is we might have some more improvements to it and making a fully working CyanogenMod