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Don't know about this but perhaps you should try alternating between frame options such as, maintain aspect ratio, full screen border and center desktop. Just hazarding a guess, no idea really. By the way, is the bits you cant see in black, or is this all stretched over the screen?
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I had the same issues with a laptop running win7 x64 with an ATI card, the screen flickered and taskbar was not refreshed after autohiding, leaving weird glitches, the solution was to update the catalyst drivers.
Also change the red box to a blue box...at first sight seems like a xenon's ac client.
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Well the red box literally represents all that I see as in the game is stretched off of my screen to the point where I only see what is inside that red box, probably some trimmed off of the sides too. It's one of those "oh all my other games work fine" moments and my drivers are fine which leaves me baffled. I may try older drivers or something.
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Maybe give beta drivers a go too.