Graphics problem, Win2K Professional. Any ideas?

[Scott]

I have a new W2K installation (actually, I believe it came
from Ghost) on an IBM Thinkpad.

Primary problem: left-click an icon and drag with button
held down. When you release the button, the menu pops
up. So far so good.

But the icon flickers (not sure this is normal). If the
window is the Desktop, then the popup menu gets left
behind. This is wrong! If the window is a folder, a
square area around the flickering icon overwrites the
popup, making it difficult or impossible to read.

Secondary problem: the picture-resize button in the lower
left of pictures in Internet Explorer 6 leaves "droppings"
behind if I scroll the IE window (i.e., scroll the picture
within the IE window).

Correlated experiment: The problem happens when I use a
Microsoft Mouse, but the problem does not happen if I use
the IBM Trackpoint.

I have tried: upgrading BIOS, upgrading the video driver,
upgrading the mouse driver, switching to the PS2-
compatible mouse driver, and all video accelleration
settings. Nothing has solved the problem.

Thanks in advance for any help!

 

[Scott]

Additional info, just discovered:

The "Show window contents while dragging" setting makes a
big difference:

If I turn this option "off" the problem happens; if I turn
this "on", the problem disappears.

I can probably live with this solution, but if anyone has
an explanation I'd still like to know.

Thanks!