Thief 3 flickers to black screen with mouse look

[Demon Cat]

I installed and patched T3 and started the first mission with the graphics settings all turned way down.

When I move my mouse to look around, the screen flickers to black and then back to the game repeatedly until I stop moving the mouse. Standing still, the game renders fine. If I walk forward, backward or strafe, its still fine. Its only when I move the mouse that this problem occurs.

1ghz Athlon
GeForce 5900
768mb RAM
Windows 2000 Pro

I know the processor is at the low end of the system requirements. My problem does not feel like poor frame rate. The screen refresh rate seems fairly constant no matter what is going on. It just flashes black and back when the mouse is moved. This pretty much makes the game unplayable.