Definitely try changing the drivers. This looks like a software issue, perhaps DirectX related. I recommend OmegaDrivers (
http://www.omegadrivers.net/ati/win2k_xp.php). DirectX should be updated first, and then install OmegaDrivers, and then install CRT/Monitor drivers. Play around with the settings in the video card's advanced options if you still get this problem. Omega's default settings works fine for me. I recommend leaving as many settings as possible on Application Preference.