I have had this problem before, it has the exact same symptoms as my prblem. Basically, it is the graphics card drivers. I would hazard a guess at you running a system with a nVidia card in it. To resolve the problem just downgrade the driver to one from about a year ago. Sounds stupid i know but it worked wonders for me. Just make sure the driver you choose can support you desired resolution and can support the infamous DirectX 9.0c.
Hope this helps....
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