Post SEP 12.1 client install on Win XP SP3, display is artifacting

I am in the process of upgrading my clients to 12.1 RU1 MP1. I have several users complaining about the video artifacting after SEP is upgraded to 12.1. This is most evident in Lotus Notes 8.5.1 when the user drags the message to a folder. It is alos occuring in Office 2007, SP3. Please check out the attachment. I have upgraded the video driver on 2 different PC's, but no change.