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I suggest trying a very simple solution, swap the graphic card with another friend, and let him try out the card while you try his.
I onced had a similiar problem, graphics corrupted...seeing red spots all over my monitor. Turned out that the R component of the RGB in my monitor has burned out. How about trying another monitor?
"The only other thing that comes to mind is that maybe the graphics card is too close to the modem and keeping heat close to the card, although as I've said I'm not sure that the problem is one of overheating and so to my limited knowledge this shouldn't matter anyway"
Too close to the modem, why not use another PCI slot that is farther away for the modem?
Hope you will get to the root of the problem...in case of worst case scenario...hope your warranty's still good!
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