I use a sample picture as background image for modeling a head.
And in Edit Mode, drag move mesh's vertices is very difficult. Program is dull respond mouse move. But if turn off background image, dragging vertex is smooth.
OS: win2000
3D Card: ATI MOBILITY RADEON 9700
Blender version: 2.41 build on 01/23/2006
Description
Event Timeline
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I have got the same 3D card as you. My OS is Windows XP Pro and I am using the same version of Blender as you are.
I think that the issue is ATI specific. I have noticed similar behaviour as you in the render window. Hit z to zoom and you will notice it.
The issue appears also in the UV/Image Editor if you load an image and pan it around.
I have figured a workaround for the background image issue: You can uv map an image to a plane.
There are some minor issues in this approach though but at least it works.
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Yes, it really depends on the quality of your 3d card what gets accellarated or not. Drawing images using 'pixmap' can be relatavily slow on some systems. On other systems it's blazing fast though (ATI 9600 here, and it goes excellent).
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Maybe using transformed and lit vertices to draw background image is a good choice.
This is a generic request to test your bug report and see if it is still an issue in 2.5alpha2 if so please let me know by making a comment in this report ie 'also in 2.5alpha2' and I will add it to the 2.5 bug list.