Disappearing decals

When I place a decal on a part everything goes fine until the moment at which I click OK in the feature manager.......... when the decal disappears. It reappears if I select it in the display manager and hit "edit decal", but disappears again as soon as I hit the OK tick. I have opened up the part file in the tutorial on decals and that behaves the same way. This behaviour applies to the graphics area and the Photo360 preview window. Any ideas what is causing this?

SolidworksPhotoview 360