Thanks for replying Trevor.
Yes, I do know the behavior you're referring to and am aware of it. I wish that were my problem, but sadly, it is not. What is happening is while I'm dragging, I have about 5 seconds to let go of the mouse button to finish whatever action I'm trying to perform (dragging to move an item, drag to draw an elipse, drag to draw a line, basically anything that requires me to hold the mouse button down while performing the action). If I fail to let go in that amount of time, I can no longer see anything in the application happening. The mouse still moves along but that's it. I have no ability to see what I'm trying to actually do anymore. I'm sure my boss would actually approve of this because it forces me to draw faster. Haha.
I do wonder if it's a compatibility issue with Windows 7 as well.