I have the exact same issue and haven't been able to sort it, tried several drivers versions, conf.ini tweaks and nothing solved it.
I have the impression that older DX9 video cards don't have this problem.
I have a Q6700@2.6GHz, a GTX460 1GB and XP Pro 32bits SP3.
I'm migrating to Seven 64bits, received it today, I wanted to do it anyway to be able to use more RAM for other games and softs, but I wish there was a fix for those who have this problem with XP.
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