I have the exact same problem, exept I'm running XP. My card card is a ATI 1950pro and many of the other user reporting the problem has 19xx cards as well - coincidence?
Anyway, I tried the settings suggested by Orford:
- Disable AI
- All settings in 3D application controlled
- In the property settings for the shortcut i ticked "Disable visual themes"
- I could not find the "disable desktop compasition" described by Orford - maybe it's only in Vista.
Tried starting BS again, but the problem persisted so I tried various combinations in the properties for the shortcut, to no avail.