Hey guys, any more info on this?
I have a very similar problem with the same game. It'll be playing fine and then certain sprites will have a fuzzy type distorted square glitch about them. It mostly happens with big bosses. One of their limbs might move and you'll get this square glitchy thing. Also during big explosions or when there's a lot going on screen. Certain levels are perfectly fine every time though. And some bosses. But for particular levels it gets so bad that you can't really enjoy playing the game as you keep seeing all these square gitches everywhere.
I only have two games for the PGM, this and Knights of Valour. Knights of Valour runs perfectly without any issues at all. So I thought it was just a dodgy game until I read this thread.
Anyway, after reading this and a few other bits, I removed the battery and used baking soda to try and get rid of any remaining battery acid. The gliching still remains for Demon Front though. The edge connector is also damaged at the end where the battery was. Originally I thought it was due to misuse (This particular unit was fairly old and dusty), but now I'm thinking it's actually from leaking acid?