Using RDP client on XP SP2 with windows servers (2008, all varieties) was causing a strange grid like pattern.  Installing update KB952155 to the RDP client fixed it.  You can tell if your client is the proper version as the RDP client connection GUI will change to not have a password field on the connection tab after this update is applied.

Evidently, this effect is a side affect after installing KB958470 (MS09-044)