For anyone who may be interested.
In Response to
http://social.microsoft.com/Forums/en-US/tabspace/thread/1ff2b07d-cff0-4fe1-926e-20b693a36882 locked thread - the screensaver has a compatability issue with nvidia vga. I got it to work by editing the space.scr module using a resource editor.
I deleted the offset value:

Enjoy!