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The BeOS Preview Release 1 requires a multisync monitor to work. Non-multisync monitor such as the Apple 13" and 16" monitors will not work with the BeOS Preview Release 1, and using one can produce the video madness you are experiencing.
BeOS Preview Release 2 and subsequet releases remove this limitation but graphics performance with fixed sync monitors is slower than with multisync monitors. Be highly recommends multisync monitors for use with the BeOS.
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