Show window contents while dragging

When I go into "my computer - properties - performance - advanced" and
set(check mark) "Show contents while dragging", it only stays that way for
the current session. As soon as I log-off or shutdown-restart the computer
it resets back to being unchecked. And yes, I did click on "apply" and OK to
save the changes. I also tried to set this from right clicking the desktop
and going to "display". When you set it in one place it windows sets it in
the other to match. I also tried to apply the "adjust for best appearance"
radio button which check marks all boxes including the "show window contents
while dragging". When I do it this way and restart the check mark will stay
in the box but the functions is as before where the window is not displayed
when dragging - just a empty frame is displayed. It's nightmare.

Anyone ever experienced this and have any suggestions as to what is the
cause of this and a fix? Thanks in advance for any information anyone can
give me on this very annoying problem.

Computer:

New Dell XPS_GEN_2
Windows XP Pro
Intel 875P chipset
3.2 GHz Pentium 4
1 GB DDR
ATI 9800 XT PRO (driver version 3.9, 09/30/2003)