Cursor causing screen to reload?

My apologies if this has been posted before, I searched and found some similar issues, but nothing just like my problem....

While in game, it seems like every time my cursor changes, my picture flickers and seems to reload the current image.

This especially noticeable while in SG base. The picture flickers, most of the base objects disappear and bold red lines are visible for a nanosecond, then everything returns to normal.

When i say "cursor changes" I mean it changes from its default (a white arrow) to something else, such as a blue hand (when interacting with objects in game). Or to the "double up and down arrow with a dot in the middle" (used to stretch windows). This happens even when the only change to the cursor is just a color change (like changing from a white cursor to a red cursor such as when hovering over a Teleporter Base Beacon).

Brand new Dell Inspiron 1545.

---System information gathered by CoH Helper version 0.1.1.8---
DxDiag gathered at March 14, 2010 18:00 (-04:00)
Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7600) (7600.win7_rtm.090713-1255)
System Manufacturer: Dell Inc.
System Model: Inspiron 1545
BIOS: Phoenix ROM BIOS PLUS Version 1.10 A13
Central Processor: Pentium(R) Dual-Core CPU T4400 @ 2.20GHz (2 CPUs), ~2.2GHz
Memory: 3072MB
.Net Memory Report: 843MB out of 3032MB available
Page File: 3438MB (2624MB currently in use)
C Drive: (TOSHIBA MK1665GSX) 106387MB out of 137586MB (77%) free
D Drive: (HL-DT-ST DVD+-RW GT30N) zero-size drive
Windows directory location: C:\Windows
DirectX: DirectX 11
DirectX Diag version: 6.01.7600.16385 (64-bit version)
Display Notes: No problems found.
Sound Notes: No problems found.
Input Notes: No problems found.
Monitor:
Monitor's Max Resolution: (blank)
Video Device Name: Mobile Intel(R) 4 Series Express Chipset Family
Manufacturer / Chip: Intel Corporation / Mobile Intel(R) 4 Series Express Chipset Family
Video Memory: 1292 MB
Driver Version: 8.15.10.1808
Driver Date: 6/2/2009 11:16:48 PM
Driver Language: English
Sound Device Description: Speakers / Headphones (IDT High Definition Audio CODEC)
Driver File: stwrt64.sys
Driver Version: 6.10.6217.0000
Driver Date: 6/29/2009 12:44:38 AM

WMI Information
Motherboard Manufacturer: Dell Inc.
Motherboard Model: (empty)
Motherboard Product: 0G848F
Motherboard Version:
BIOS Manufacturer: Dell Inc.
BIOS Name: Phoenix ROM BIOS PLUS Version 1.10 A13
BIOS Version: DELL - 27d90a17
BIOS Release: 20091023000000.000000+000
Registry Information for Current User
Resolution: 1280x706
3D Resolution: 1280x706 (Not using renderscale)
Full Screen: No
Maximized: Yes
Screen Position: 0, 0
Refresh Rate: 60Hz
Vertical Sync Enabled: Yes
Physics Quality: None
Maximum Particles: 50000
Max Particle Fill? 10.000
Physics Card Enabled: No
Anti-aliasing: None
Anisotropic Filtering: None
Texture LOD Bias: Crisp
Water Effects: None
Bloom: 1.000 (turned off)
Depth of Field Enabled: No
Desaturation Effects (Sepia) Enabled: Yes
Shader Detail: Low (no world bumpmaps)
World Texture Level: Medium
Character Texture Level: Very High
World Detail Level (Vis_Scale): 0.800
Entity Detail Level: 1.000
Shadows Enabled: Yes
Gamma Correction: 1.000
Geometry Buffers (VBOs) Enabled: Yes
Suppression of Extra Player FX Enabled: No
Suppression of FX When Camera Close Enabled: No
Close Suppression Range: 3.000
Show Advertisements: Yes
Audio Mode: Performance
3D Audio: No
FX Sound Volume: 1.000
Music Sound Volume: 0.600
Show Advanced Graphics Options: No
Overall Graphics Quality: 0.300
Reverse Mouse Buttons: No
Save Login Username: Yes
Transfer Rate: 575379 bytes/second
Current Game Version: 1600.20100114.8T
Installation Directory: C:\Program Files (x86)\City of Heroes
Mod files in the Data directory
.\texture_library\MAPS\city has 1 file
.\texture_library\MAPS\Midnight_Squad has 1 file
.\texture_library\MAPS\Safeguard has 9 files
.\texture_library\MAPS\sewers has 44 files
.\texture_library\MAPS\static has 32 files
.\texture_library\V_MAPS\Outdoor_Missions has 9 files
.\texture_library\V_MAPS\Static has 16 files

Lower the Maximum Particles to between 5-10 thousand. Lower the Character Detail level. Put Texture LOD Bias back to Smooth. I'd also turn off Desaturation Effects, Shadows and Geometry Buffers if it were me. Then again, I wouldn't be trying to run a graphically intense game like this on a laptop with that video card.

You may want to update the drivers using the ones on the Intel website. Dell is notorious for not updating video drivers for laptops, as are most OEM's. Yours are a bit old.

As a side note, when posting logs, please don't change the formatting. It makes it much more difficult to read. The breaks are where they are for a reason.

Same manufacturer (Intel) but I think that's all. I think that the X4500HD is a newer chipset.

I don't keep up much with the Intel video chips because, well, they aren't for gaming.

EDIT: Oddly enough, when I look at stuff for the HD series of cards, it leads me to the same driver.