Actually, I just resolved this same problem just days ago...
One small difference is that my Video Card is an ATI 5850.
I put together a new theme for my desktop from various downloads here at wincustomize, but this time I felt like I wanted to base my theme aroud a Dream. I went with "Red Giant" by Master Baron, a beautiful Dream.
I worked out the whole entire theme... Windowblind, Icons, Cursor, Docks, Widgets and so on.
Shortly there after... I started getting the same problem you are having.
I quickly figured out that the problem was due to the Dream I was running.
I think that it is a problem with the TYPE of Dream or a compatability problem with Windows 7, I'm not sure.
I know it's not a problem with my rig, as everything else runs super fine with Core I7 920, 128Gb SSD, 6Gb ddr3-tri channel ram, 1000 watt PS, and so on.
So the big question to you... Are you running a Dream?