Someone raised the same topic on SU forum: http://www.google.com/support/forum/p/sketchup/thread?fid=0d4a1a86e86a966b0004b0751abb058b&hl=en and those interested are invited to have a look.

Yes, I tried the suggestion of switching the functions on and off. It worked for one SU session but the issue appeared once again when the SU was restarted once again for the next session.

Hi, guys. I have the same issue as all of you described. I have contacted Nvidia and they took me through a painful driver reinstall in a Safe Mode for a few times. I tried all different drivers and even restored my PC to an earlier point (also recommended by them). Eventually when everything failed they told me it is not the card that is giving me problem.
At the same time if you read posts on SketchUp they say it is the graphics card and there is an issue with OpenGL.

I personally think there is something wrong with both parties and no one wants to take the responsibility. The problem is really, really annoying!

My system is: Intel(R)Xeon 8 core processor, 8 Gb Ram, Nvidia GTX 560 (one month old); Windows 7/32, SketchUp 8 Pro

If anyone has any solution besides reinstalling the drivers, switching off the Hardware acceleration or Fast feedback please share it as this may save a few lives out there.