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I have same problem. But I run Windows 98 so I think it's not XP's sin.
I noticed that trashing occurs only when all screen is static. Any local animation or other image changes remove all garbage.
I suppose that such behavior can be possible caused by unexpected optimization code of DirectX 8.0 which could skip some update cycles in case of static image.
Could I easily downgrade DirectX to version 7, I'd check it.
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