I have exactly the same problem. But it only happens when i use the newest Nvidia drivers for my TNT2. The problem also happens with all sorts of ICQ Versions on my system. All other applications seem to work without any problems. Maybe it's a Microsoft bug?! Does anybody know if the people from icq use the same libarys as smartftp?
I've allready tried updating directx and got new drivers for my sis agp port. But nothing helped.
By the way: I'm using Windows 2000.