Still no luck. Tried uninstalling and reinstalling Arduino (again). The problem hasn't gone away. Just to clarify, my Java is up to date, as well as my Graphics drivers. It is also evident when running a previous edition of Arduino (i tried 0022 and 0021).
I've even tried running Arduino as an Administrator in Windows XP compatibility mode (running Arduino on a W7 system), with the aero function disabled and it STILL happens.
Slightly off topic: I've noticed that games have been lagging recently, they never used to and I have a high end system. Could this be a graphics card related issue?
If anyone could help me I would be very appreciative.