Good catch! ;D
So, the SE sorta boots and then it "crashes" and you have the weird artefacts on top of the checkerboard pattern, right? That's odd.
Have you removed the PRAM battery? Those things age very badly and they can kill a Mac. The SE will work fine without it. (it won't keep time but the battery is probably already dead...). It won't fix your problem but it certainly doesn't need it.
One of my SEs is currently dead because the battery exploded before I got it. It boots to the checkerboard. I really hope your battery bomb hasn't gone off yet!
The checkerboard problem :simasimac: is usually bad or badly seated ROMS and/or SWIM. Take the Mac apart, and carefully remove those 3 large chips labelled ROM HI, ROM LOW and IWM or SWIM on the logic board. Clean the pins with alcohol or with sand paper (if required) and put them back on again. Make a note of which one's which before removing them to make your life easier. |)
Dust can cause such problems, but so does the damn Maxell! (you'll hear a lot about this thing here...)