Timeline turns red when a clip is moved in Premiere Pro CS3

When I move a clip in the timeline in Premiere Pro CS3 the entire thing turns red until I open one of the menus. I uploaded a video of the issue here:
http://youtu.be/53VLFm-EN_o
Does anyone know how to fix this?
System specs:
  Model Name:          MacBook Pro
  Model Identifier:          MacBookPro4,1
  Processor Name:          Intel Core 2 Duo
  Processor Speed:          2.6 GHz
  Number of Processors:          1
  Total Number of Cores:          2
  L2 Cache:          6 MB
  Memory:          4 GB
  Bus Speed:          800 MHz
  Chipset Model:   NVIDIA GeForce 8600M GT   
  Type:          GPU
  Bus:          PCIe
  PCIe Lane Width:          x16
  VRAM (Total):          512 MB
  Vendor:          NVIDIA (0x10de)
  Device ID:          0x0407
  Revision ID:          0x00a1
  ROM Revision:          3212
  Display Type:          LCD
  Resolution:          1440 x 900

Could be grapficscard issue.
Also your mac does not meet minimal requirements for display.
http://helpx.adobe.com/x-productkb/policy-pricing/system-requirements-premiere-pro.html#ma in_Adobe_Premiere_Pro_CS3_system_requirements

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