I am getting the same, you can move the stuff around if you click on it a lot. It moves to another random part of the screen. What parts of the dxdiag is relevant to post here? Everything in the display part I assume. Or do you want the whole log?

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System Information
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Time of this report: 9/5/2008, 02:16:31
       Machine name: .
   Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_rtm.040803-2158)
           Language: English (Regional Setting: English)
System Manufacturer: Unknow
       System Model: Unknow
               BIOS: Award Modular BIOS v6.00PG
          Processor: AMD Phenom(tm) 9850 Quad-Core Processor,  MMX,  3DNow (4 CPUs), ~2.5GHz
             Memory: 3326MB RAM
          Page File: 359MB used, 7794MB available
        Windows Dir: C:\WINDOWS
    DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
     DxDiag Version: 5.03.2600.2180 32bit Unicode

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Display Devices
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        Card name: ATI Radeon HD 4800 Series
     Manufacturer: ATI Technologies Inc.
        Chip type: ATI display adapter (0x9442)
         DAC type: Internal DAC(400MHz)
       Device Key: Enum\PCI\VEN_1002&DEV_9442&SUBSYS_05021002&REV_00
   Display Memory: 512.0 MB
     Current Mode: 1280 x 1024 (32 bit) (60Hz)
          Monitor: Plug and Play Monitor
  Monitor Max Res: 1600,1200
      Driver Name: ati2dvag.dll
   Driver Version: 6.14.0010.6822 (English)
      DDI Version: 9 (or higher)
Driver Attributes: Final Retail
 Driver Date/Size: 5/15/2008 03:11:32, 306176 bytes
      WHQL Logo'd: Yes
  WHQL Date Stamp: n/a
              VDD: n/a
         Mini VDD: ati2mtag.sys
    Mini VDD Date: 5/15/2008 03:48:18, 3098112 bytes
Device Identifier: {D7B71EE2-D702-11CF-1469-0825A1C2CB35}
        Vendor ID: 0x1002
        Device ID: 0x9442
        SubSys ID: 0x05021002
      Revision ID: 0x0000
      Revision ID: 0x0000
      Video Accel: ModeMPEG2_C ModeMPEG2_D
 Deinterlace Caps: {6E8329FF-B642-418B-BCF0-BCB6591E255F}: Format(In/Out)YUY2,YUY2) Frames(Prev/Fwd/Back)0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)YUY2,YUY2) Frames(Prev/Fwd/Back)0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
                   {6E8329FF-B642-418B-BCF0-BCB6591E255F}: Format(In/Out)UYVY,UYVY) Frames(Prev/Fwd/Back)0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)UYVY,UYVY) Frames(Prev/Fwd/Back)0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
                   {3C5323C1-6FB7-44F5-9081-056BF2EE449D}: Format(In/Out)NV12,0x3231564e) Frames(Prev/Fwd/Back)0,0,2) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
                   {552C0DAD-CCBC-420B-83C8-74943CF9F1A6}: Format(In/Out)NV12,0x3231564e) Frames(Prev/Fwd/Back)0,0,2) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
                   {6E8329FF-B642-418B-BCF0-BCB6591E255F}: Format(In/Out)NV12,0x3231564e) Frames(Prev/Fwd/Back)0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)NV12,0x3231564e) Frames(Prev/Fwd/Back)0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
         Registry: OK
     DDraw Status: Enabled
       D3D Status: Enabled
       AGP Status: Enabled
DDraw Test Result: All tests were successful.
 D3D7 Test Result: All tests were successful.
 D3D8 Test Result: All tests were successful.
 D3D9 Test Result: All tests were successful.