I have tried it on another system with a really good and modern graphics card and was able to reproduce the results. I haven't come up with a test case for it because the only test case I have right now is my 4 meg game

However I have a hunch that that might be part of the key to the problem. The only difference I can find between my game and Balls.jar (which doesn't display this problem) is the fact that my game uses so much more memory, which says to me this may be tied to video memory holding this images being tossed aside for other use because it's so full already.