"Static" or random flashing dots on every screen in mediaportal

[Dan_McConnell]

Area: Media Portal Program / Media Portal Skin
MP Version: 0.2.0 and 0.2.1 .
Skin: BlueTwo
Windows Version: Windows Media Center
CPU Type: Intel P4-M 2.4 GHz
Memory: 1 gig
Video Card: ATI Radeon Mobility 7500
Video Card Driver: 6.14.10.6378
Video Card Resolution: 800x600

Synopsis: In every screen in MediaPortal I see what looks like static (small randomly flashing dots). This tends to occur most where there is color transition (ie text, picutes, etc). This only happens in MediaPortal (Windows desktop and MCE work just fine with no static). The static is present both on the laptop LCD as well as on the Plasma TV I use for media portal. I have completely reinstalled the machine (OS and all) and this is still happening with both 0.2.0 and 0.2.1 versions. The dots show on the menus screens as well as during video playback and seem to pause during menu screen switching.

It is driving me mad.... any ideas??

thanks.....