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I have just experienced this error again.
All our other AutoCAD users does not have this issue.
The users machine worked just fine friday but today (Monday) the vertical and Horisontal construction lines doesn't work.
They do however work if you type the command. When doing that you can insert any number of construction lines. If the mouse leaves the drawing window, the dashed construction that follows the mousepointer freezes just like when you activate the command from the ribbon menu.
The machine is a Dell Precision 380 with 2 GB RAM and a NVidia quadro pro 1400. The operating system is Win XP.