i'm on a vista system right now and might not have the menu names quite right for XP, but i found a workaround to this problem to be:
control panel > display > and then the tab that shows your reso. selection, click advanced (i believe) and you should get a tab for either your apadapter or hardware acceleration (something like that).
anyways, you looking for a slider, it will most likely be all the way to the right; take it down 2 notches.
this (for the most part) solved my issues with this on xp/nuendo