Same flickering issue here...
I have had no issues previously...was running smooth with build 5600, XP SP3 and OS X 10.5.2 on a Mac Pro 2 x 3GHz dual-core with 4GB RAM and 512 VRAM. I installed the 10.5.3 update yesterday and all went to hell with this flickering/redraw issue. It's basically unusable at this point. Fortunately, I am referencing my Boot Camp partition, so I can reboot and go in via Boot Camp to get any urgent things done, but, I became a Parallels user so that I didn't have to do that.