Can anyone help with this infuriating constant issue I have?

On my latest CAD PC I have an annoying issue where when I want to change the view to do anything, instead of the whole screen changing, I get a (usually) tiny little window (as shown in the picture) displaying the actual current position of the model.

It will stay like this for ages, only way I have found to view the current state is to either right and left click in the viewin window, or minimise and and un-minimise Solidworks.

This makes trying to mate two faces in an assembly EXTREMELY tedious.

Generally it occurs more often with a face or edge selected, but can occur at any time. When a face is selected (ie to mate it to another face) I would say it occurs 80% of the time.

It's driving me to dispair!!

The image shows the (unusually large this time!) 'window' inside the 4 arrows, that I see after twirling the model from it's previous side view. When this image was grabbed, the model is in the position shown inside the window!

The very small red rectangle is the more common size I get, obviously beyond a joke to try to operate!

System is Windows 7 64 Bit, Solidworks 2010 SP4. Networked licence.

I've checked the SW site for the recommended drivers for my graphics card, and for the 3D spacepilot I also have.

Graphics card is ATI Firepro V5800. Processor is i7-2600K @ 3.4GHz.

SolidworksGeneral