This problem started about 3 MONTHS ago and I've been trying things to make it stop. Nothing I have done has seemed to work. I tried replacing RAM, virus scanning and the like. This video shows the problem in action.

http://www.youtube.com/watch?v=C7kawJQ2GJM

I used Audiosurf, which I run in windowed mode, as an example of what is happening. Basically I start it up and the game goes into freak mode. I have no clue why it does this, but I'm getting pretty tired of it. I can run games in full screen no problem, but this also happens when I use PROGRAMS such as Photoshop, or video editing software.

Any help will do. Thank you.

Specs
Operating System
MS Windows 7 Home Premium 32-bit
CPU
Intel Pentium E5200 @ 2.50GHz39 °C
Wolfdale 45nm Technology
RAM
3.0GB Dual-Channel DDR2 @ 325MHz (5-5-5-15)
Motherboard
ASRock G41M-GS (CPUSocket)37 °C
Graphics
E17T4W @ 1280x1024
ATI Radeon HD 5600 Series
Hard Drives
313GB Seagate ST3320813AS ATA Device (Unknown Interface)38 °C
156GB Western Digital WDC WD1600JS-00NCB1 ATA Device (IDE)42 °C
OPTICAL Drives
No optical disk drives detected
Audio
Realtek High Definition Audio