While it may not be the answer that you want to hear, it sometimes is
a relief to hear "you're not crazy, there seems to be a problem." We
are currently working with Autodesk to figure out exactly where the
problem lies.
Other than that, I really don't have any more information for you now.
Have you found a mode that will work for you in the materials editor
without mouse trails or palette problems??
Selecting the Vibrant driver I can use the 1024x768x256 mode for my
XGA-2 card. Also I have to use that mode in the main display in
order to get the Object color box to work. It does not work if I
select VGA mode. Thanks for letting me know. I hope a fix will come
soon.