I HAVE seen this problem before on my laptop. The laptop has a fairly crappy video card. I was able to resolve this issue by fully updating my video drivers.
The thing to keep in mind is that this is a purely VISUAL effect. The file is just fine.
A cheap hack that also worked (but slowed down system performance) was to turn off video acceleration. This seemed to bypass the section of the driver that was failing.
Do you know what kind of video card you have?