The gray and white checkerboard looks like Photoshop's transparency grid which is revealed by transparent pixels in the image. Does the photo file not have that rectangular area missing if viewed in other programs such as the Windows image viewer?
Thanks for that info.
That pretty much narrows things down to Chris' comment - Video Driver issue.
What is the make/model of your video card/chip?
What version number and date, is your installed driver?
I wish to echo Chris' comment about getting the driver from the mfgr's. Web site, and NOT relying on Windows, or any utility to tell if you have the latest - they will likely be 6 mos. out of date.
Now, if you have a laptop, you might need to go to that mfgr's. Web site, to download the latest driver. Companies, like Dell, HP, Lenovo, etc., re-write video drivers for their particular computers. However, if you have an nVidia, or ATI/AMD card/chip, those computer mfgrs. usually do a good, and quick job, at re-writing and posting those to their sites.
That is part of it, but there will be a model number for that nVidia card. When you have that info, go to the nVidia Web Site, and look for the GeForce "family." Then, select your exact model, plus the OS that you are using. That will lead you to the latest driver. Look at the number and date of that driver. How does it compare with the one that you have installed? If yours is older, then download and install the latest version. Reboot. Test. Be sure to read the installation directions for the new video driver, as things do change a bit, from time to time. You may have to make a few settings in your current nVidia console, before installing - not often, but I have seen that for my nVidia Quadro card.
Now, if you have a Dell, HP, Lenovo, or major mfgr's. computer, go to their Web site first, as many will take the latest nVidia (or ATI/AMD) and rewrite it just a bit, for their exact computers. Most of the majors are very good, and very quick, and often will have a new driver up on the same day that nVidia does.
Good luck, and remember to reboot, before testing.
bill & noel i have NVIDIA GEFORCE 3300m(for laptop,sony vaio),but im not in use the last update,because i have some issues with my users folder(a bug).so i'm waiting to download the next update when will be available.until then im doing the next trick:close and reopen fhotos .with the ''second open'' the problem disappears.what do you think?????
That rather odd workflow might be your only recourse, until you can get the latest nVidia driver. I would also check Sony's Web site, as I believe that they repackage the video drivers, like Dell, HP and some others do.
Try changing your Advanced GPU setting in the Edit - Preferences - Performance dialog. Perhaps you can lower it to "Basic" mode (if it is not already set to that) and see the problem resolved. Remember to close and restart Photoshop after making a change and before testing it.
You'll still have all the features. Several things that are normally run in the GPU, such as color-management, are now run in the CPU, but with a modern computer I doubt you'll sense a performance difference.