I have pored through my code again and again. I have compiled other code samples and they work just fine. So that tells me it's a problem with my code, which worked fine before I ever downloaded those drivers. This whole mess has got me banging my head against the wall (it's either that or my monitor).
Replacing the calls to the back buffer with the primary surface displays just fine. Only the backbuffer is grabled.
I've ruled out the factory drivers because the code I compiled from other people (books, net) worked fine. I've cut and pastted into my code and it still didn't work! All the commercial products I have that use DX work fine as well. Any one have any ideas as to what could cause this? I'm using DX 7 BTW.