I just tried it again, exactly what you have described, it works on my machine.
May be what Rick said in his earlier post is the problem. It may be a hardware problem?
Well... We have 7 machines at our office. None of them will function properly with AC and Exposé. All the machines are quartz extreme qualified so that can't be the problem.
The windows zoom beautifully out and no problems with selecting them. Nothing happens when we try to do draw, zoom or scroll...