@Dendwaler. While I can't speak for bnewton... no, I don't have that toggled. Both of my systems are set to default (Bounding box center.) Also, it doesn't do it
all the time. Frankly, it's odd that it happens at all...especially for how inconsistent the weirdness is.
As stated in my earlier post - today I set up a Dell D820 laptop with Vista 32bit on it. As far as specifications go, it's basically on par with my laptop with the exception of it's graphics chipset. The D820 has the nVIDIA Quadro v120 chipset, while my HP 6830s has ATI's HD3200. Both have the same amount of graphics memory (256 meg). Although the ATI is technically faster, they're pretty much equals.
I loaded up the blend for Eder Taygahn - and fooled with it for a while. Not once did it act "odd." I was able to select an object, zoom in - then pan up and around. I could drag the view around, and do all the things I would normally do.
The oddest part of this, is I've never encountered this before until upgrading Windows. I've got most of the drivers and whatnot downloaded to do a fresh install on the laptop. It might be a few more days before I can do the actual WinXP install for testing. However, I have an itching feeling that it has something to do with Win7. Who knows, I might eat my shorts with this one..., lol.

The only way to find out is the scientific method.