Hi Ed, I've also seen this behaviour on a OptiPlex GX240, it has a ATI Rage 128 Pro TF card, the only solution I've found is to change the depth to 16 instead of the default 24.
Just add "DefaultDepth 16" to your Screen section. I would like to hear an alternative solution, but I can't seem to tell the different between the two depths. Hope that helps.. :-) -Brynet