Don't know what Video card you have but I had similar problems on my Compaq laptop with a ATI Radeon 7500. Switching to 1024x768 or 1280x1024 resolution (from the native LCD 1440x1050) and disabling some graphics features (settings\display\settings\advanced\troubleshoot blah blah) did the trick. Turn down the functionality to minimum and crank it back up notch by notch.
I find some programs are really unhappy with LCD specific resolutions and advanced features, many Dos legacy programs like MasterCam flat out refuse to tolerate them at all.
Mach2 will work at any res. for me, but enabling the fancy 3D stuff results in some pretty weird looking toolpaths and a choppy cursor.
Frank C.
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Well its getting weird
If I bring up the task manager and open up Mach 2 the CPU usage hangs around 15 percent. When I load the Gcode the usage jumps up to 100 percent and becomes sluggish. If I minimize the screen size the CPU drops back down and everything works fine.