Here's a youtube video of my problem: http://www.youtube.com/watch?v=ok7gBnEYqLk
I'm having a very strange problem with my installation of Arch Linux on my Asus eee 701SD. I've installed LXDE as a desktop environment, and without an xorg.conf file it works perfectly. However, I recently wanted to change the color depth for a particular application, so I used Xorg -configure* to create a conf file, moved it to /etc/X11/xorg.conf, and it still works perfectly.
I then added the line "DefaultColorDepth 16" under the "Screen" Section. Everything seems to work fine, though some of the colours don't look as nice (as expected). However, once I start Wine, when I move any windows up and down (not so much side to side), the screen goes a bit nuts. It's kinda hard to explain, but the screen seems to jumble around and go crazy until I stop moving the window. I also get the same distortion when I move the mouse over the window modifier buttons in the top right of the window, and also when I click or type within windows. Even after I close Wine, this still occurs with other windows, and doesn't stop until I close X.
I worked out later that by closing and opening the laptop screen/lid I trigger the same effects as if I'd opened Wine. I edited ~/.xinitrc to open xterm, and the same thing seemed to happen. I'd normally try to fix this myself, but I have no idea what the problem could be. Any ideas? It might be a hardware problem...
In case you're wondering why I needed 16bit color depth, I was trying to run an old windows game called Chaos Overlords on my laptop. It runs ok in 24 bit, but some of the graphics don't show up, and running it in 16bit solves this problem (the same problem occurs in Windows).