When I'm running 3D application in window on X1300XT card (WinXP Pro SP3, newest 10.2 Catalyst legacy drivers) and I got any tooltip popup on the rest of desktop then frame rate of my application is going down to like 1-2 fps.

I can get similar effect when I open Start Menu or any "right click" menu on desktop. But when I turn off "fade in" and "drop shadow" effects on menus (Display Properties -> Appearance -> Effects) sytuation is going back to normal here.

The tooltips/baloons problem still remains - any ideas how to fix it?

I've already googled a lot and it seems that it is not just my case. There are a lot a people with similar problems, and they got different cards - all are ATI's one. I've heard this is kind of Windows problem and as I read here (post of Asterchades) it can be somehow fixed. Problem is - the link in last linked post doesnt work for me.. :(

Update to my situation: when last time my PC went out of order it was motherboard's fault. So I've replaced my Asus P4P800 Deluxe to P4P800-E Deluxe (I had no other option as my PC is "too old") and reinstalled whole Windows XP system. Since that time I did not get freezes I've described above. I do not know if they were caused by my old MB, long time of no reinstallation of Windows or because I could not uninstall completely of my older graphics card drivers.

Anyway problem "somehow" has resolved itself.