It's a well known problem with early active matrix LCD's. You need a lot of luck to find good B&W active matrix screen without fading.
The fading of the corners will get worse the longer the powerbook is powered on.
As far as I know the fading issue is only with B&W active matrix panels: I haven't seen it with color LCD's.
As for the Powerbook 520/540 series, all screens are interchangeable between different models: it's best to swap the interconnect board as well, I'm not sure it's necessary.
A good tip: recap the replacement LCD panel first before install and replace the backligh bulbs when the brightness is low or when the CCFL bulbs are black on both ends.
I replaced the backlight CCFL bulbs in my powerbook 500 series, together swith recapping the LCD panel, the picture quality looked like brand new.