Ouch man...the color degradation you described before it went black is actually a terrible semi-common issue with older TiBooks; in other words, I've heard of that exact same problem happened with other TiBooks. The worst part is there's nothing really that you can do to solve the issue unless you're extremely good with electronics or you feel like paying Apple to fix it.
I would call Apple, explain your problem, and get a solid estimate on the cost to fix it, and then judge from there if it's worth it. Sorry to hear this man, and best of luck.
