Mac 10.6.3 updated and Win 7 display jumble

After updating Mac to 10.6.3, I now get random screen flashes and jumbled pixels. Sometimes the entire Win7 display is entirely re-arranged blocks of pixels.

I de/re-installed Parallels, tried my vm and the issues remain. I created a fresh install of Win7 and the issue remains.

I attached a couple screen shots.

MacBook Core 2 Duo 2.4Ghz
4gb SDRAM

Parallels 5 build 5.0.93445

 

Additional info Mac 10.6.3 updated and Win 7 display jumble

This seems to happen after waking MacBook from sleep. The pixel patterns move and change as I move the cursor. Parallels view is usually set at 'Window.'

I can clear pixel jumble by refreshing the window with F5 key.

Also,
My first Win7 Pro vm was imported VMware using Parallels Transport-the problem did not exist using VMware.
The current vm is fresh Win7 install from DVD.
I am not running Boot Camp.
Parallels Tools v6.5

Win7 settings
Monitor -Generic Non-PNP -driver Microsoft 6.1.7600.16385
Display -Parallels Display Adapter WDDM -driver 5.0.9344.0

 

I have the same problem sometimes. But it seems only to happen when I use MS Office. The thing can get even worse in that the OSX menu gets scrambled as well... for me it's always a sign to save my work and prepare for a machine lock-up.