Hi, I had the same problem about a week ago and this was the solution I received and it actually worked! I only had to do steps 1-4. I should sticky this and I may.
Here are a few steps to take which should resolve the problem:
First, completely uninstall Second Life (including temporary cache
files) and reinstall. It's important to clear out temporary Second Life
files (such as cache) when reinstalling. Here's the process:
1) Open c:\Documents and Settings\(yourusername)\Local Settings and
delete the contents of your Temp folder.
2) Open c:\Documents and Settings\(yourusername)\Application Data\Second
Life and delete the entire Cache folder.
3) Uninstall Second Life using the Add/Remove Programs tool in your
Windows Control Panel.
4) Visit
http://secondlife.com/download and download and install the
latest release.
NOTE: If you cannot see the files or folders, go to the Tools menu,
choose Options, go to the View tab, and select Show Hidden Files and
Folders. Then click OK.
Next, visit this blog site and turn off Vertex and VBO. Very important!
http://blog.secondlife.com/2007/03/28/1140-known-issues-drivers-vbo-ati-x300x600-notebooks-and-other-woes/If this fails please send this information:
DXDIAG:
Left-click on the Start button and select Run from menu, then
in the Open text box, enter "dxdiag" and click OK.
When DirectX Diagnostic Tool appears, let it gather all information then
click on save all information at the bottom of the windows then attach
back the .txt file.
SecondLife.log and stats.log:
The files are labeled Secondlife.log and stats.log and are usually
located in the
C:\Documents and Settings\(your user name)\Application
Data\SecondLife\logs folder on your hard drive.
If it does not appear in that directory, you will need to turn on hidden
file types. To do so, please select the "Tools" option at the top of
your open folder, then select "Folder Options." Next, click the "View"
tab and select "Show Hidden Files."