Still trying to figure this out, I have stripped the project down to its bare minimum to render the objects and I can still reproduce the issue.
If any of you would like to take a look and see if you can reproduce the issue then here is the Visual Studio 2012 project with the .x object included (72 kB total):
http://www2.zippyshare.com/v/mI5AarI7/file.html
It should be ready to build if you just set the directories for the directx SDK on your computer. There is also an already built .exe in the Release folder.
The camera is controlled with WSAD, if you go backwards slightly you will see the object cross over the far clipping plane. At that point you will see the fps (in the upper left corner) go down drastically if the behavior is the same as for me.
You can try changing the device creation to use "D3DCREATE_HARDWARE_VERTEXPROCESSING" to see if the issue goes away.
Of course, if there are any debugging gurus out there that have a few minutes to spare to determine if this is actually a bug that would be great. :)