This is a common issue when an on-board intel graphics card is present.
Im pretty sure (from memory) the steps on XP are as follows :
Right click your desktop and choose properties.
Go to Settings
Turn down the hardware acceleration so its on the 2nd or 3rd notch from the left, this should rectify the problem.
For what its worth, I believe an intel graphics driver update caused this issue.
Worked like a charm, you got the steps almost perfectly.
From settings to advanced mode and from there Troubleshooting
Happy to help.
I have two machines. Both with Intel HD graphics and Troubleshooting is greyed out and thus I can't disable it. Anyone happen to have a second solution for us?