http://bugs.winehq.org/show_bug.cgi?id=10216
--- Comment #14 from Curtis Mackie curtmackevo@gmail.com 2008-09-22 14:16:28 --- I don't think this is a bug, then. Your video card (or X, one of the two) doesn't like something about the change to 640x480x8 video mode, and xrandr (correctly) reports this. This explains why the bug appears for some people and not for others.
A possible workaround would be having Wine check the available graphics modes and choosing the most appropriate one - perhaps 640x480x16 would work, for example. At the very least, we could make Wine draw in the center instead of in one corner, so it's not as annoying.