I have the same issue... Are you running an AMD 64 CPU?
I reinstalled both XP and AH from scratch without restoring from backup and still have the same problem. I never had this problem prior to 2.05.
DX DIAG OUTPUT:
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System Information
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Time of this report: 9/14/2005, 16:41:44
Machine name: BLAYDE
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 1 (2600.xpsp1.020828-1920)
Language: English (Regional Setting: English)
System Manufacturer: NVIDIA
System Model: AWRDACPI
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: AMD Athlon(tm) 64 Processor 3200+, ~2.2GHz
Memory: 1024MB RAM
Page File: 123MB used, 1826MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
DxDiag Version: 5.03.0001.0904 32bit Unicode
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Display Devices
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Card name: NVIDIA GeForce FX 5700LE
Manufacturer: NVIDIA
Chip type: GeForce FX 5700LE
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0343&SUBSYS_A3333842&REV_A1
Display Memory: 256.0 MB
Current Mode: 1280 x 1024 (32 bit) (60Hz)
Monitor: Default Monitor
Monitor Max Res:
Driver Name: nv4_disp.dll
Driver Version: 6.14.0010.7801 (English)
DDI Version: 9 (or higher)
Driver Attributes: Final Retail
Driver Date/Size: 8/2/2005 16:35:00, 3908864 bytes
WHQL Logo'd: n/a
WHQL Date Stamp: n/a
VDD: n/a
Mini VDD: nv4_mini.sys
Mini VDD Date: 8/2/2005 16:35:00, 3198560 bytes
Device Identifier: {D7B71E3E-4003-11CF-8B45-398300C2CB35}
Vendor ID: 0x10DE
Device ID: 0x0343
SubSys ID: 0xA3333842
Revision ID: 0x00A1
Revision ID: 0x00A1
Video Accel: ModeMPEG2_A ModeMPEG2_B ModeMPEG2_C ModeMPEG2_D