Please post which graphics card you are using on your system and the driver version. I've posted a link earlier to a site where you can check if your card+driver version are supported/certified. Please verify that first.
One software to try disabling is the Nvidia Display Manager. I'm not sure if that is causing any problems yet, but better rule it out.
Don't forget to check the link I posted earlier in the thread to ensure that you have a supported/certified graphics driver version installed for your version of Civil 3D and Windows OS.
You can also try doing a repair on the installation. Do this from the add remove progeams menu in control panel.
Beyond that maybe post a screen shot of that screen so we can see what programs you have installed.
i sawtwo peices of software that would be suspect.
I have this same problem on 2 machines out of 40 Civil 3D 2011 users and both machines have XP 64bit.
I have uninstalled all video drivers and installed the recommended Nvidia driver 265.70.
Ran the Re-install
Ran the 3D config and updated the performance driver, turned off and on anything I could.
Deleted the Civil 3D 2011 registry so it would perform a install for that user.
All of this did not help the user, has anybody actually figure this problem out?
I must have posted this in another thread as I don't see it here.
I uninstalled the HP security tools and the fingerprint reader and it fixed my issues. I can even run Dynamic Input without the constant hesitations.
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