Very weird distortion.
I have my A4000 triple booting with OS3.1 with Cybergraphics, OS3.1 with Picasso 96 and OS3.9 BB2 with Cybergraphics 4 RC5 on a Cybervision64. No issues with installing any of them. I like Cybergraphics a little better than P96. Dragging screens is cool if essentially useless.
I definitely concur on trying to reseat the memory chips. And check the Zorro contacts as well.
There are a lot of parameters that can be changed in the CybergraphX commodity popup in the Prefs draw. I've had to change some of them to get things working smoothly and I would play around with them if reseating the memory doesn't work. You might have set some parameter in the installation that could cause this. I had some weird stuff but nothing this bad when I installed and unchecking one of the parameters fixed it. I don't remember which one, unfortunaltely.