CS3 Cursor Lag & Stutter

I've done a search and did not find a solution.
When working in Photoshop CS3 I get a horrible lag on my cursor if I use the space bar to enable the hand tool and move around the canvas with my mouse.
The problem disappears as soon as I use control + space bar and zoom in or alt + space bar to zoom out. However the very next time that I use the space bar to move around, the delay comes back until I zoom in or out. This happens with my mouse or my Wacom tablet. It makes the Wacom tablet almost unusable.

Specs:
Vista32 Ultimate
Intel Quad Core Q6600
4Gb Ram
nvidia 8800GT video card

The Wacom people said, "That's just how it is for everyone. It's a problem with Adobe software." Judging from the lack of post on this problem, it makes me think I'm an isolated incident.

Thanks for any help,
Rastus

cs3 has all updates applied? mouse drivers updated? video drivers updated?

and windows updates... updated? :)