I figured out what was wrong a couple months ago, for my machine anyway. I had to change the DPI setting, which is under Control Panel>Display>Settings>Advanced. By default, mine was set to Large Size, 120DPI. I switched it to Normal Size, 96DPI and now Macromedia displays just fine, and my web graphic problem was fixed. After spending hours on the phone with both Dell and ATI tech support, they wanted me to send my computer in to be "fixed"...so I emailed our school district's tech guy, and the first thing he suggested was to change the DPI settings. Bingo! I haven't breathed a sigh of relief like that in a long time.

-Jason