Yes, I have the same problem. Radeon HD 7950 with the latest drivers 8.01.01.1215 on windows 7 all service packs applied. The problem is frequent enough to be totally unproductive but sometimes Premiere keeps running for quite a while.

In my case my system blue screens and I need to boot up and start again. The problem seems to occur due to what is going on in the media library. Scrub never works unless the windows are large enough.

In the above image media is imported but none of it is touched. All looks well.

As soon as I move my mouse over the video the scrubbing starts but it renders weird.

The top right tile is being scrubbed. You can see how the video consists of various tiles that are scrambled. This does not happen when the video window is big enough. In this case the video contains color but sometimes it does not. Crashes happen in both cases very frequently 1 or 2 times per hour and sometimes continuously. I suspect it is a driver issue with ATI. It be the first and last ATI card I ever buy but I am stuck with it. It be nice if I could actually use the software though.

The above example shows scrubbing when the thumbnail is big enough. The Black and White / upside down effect occured with these same files in the same project about 1 hour ago.

[UPDATE]

In the very same screen shown above the PC blue screened as soon as my mouse moved over the bit you can see of the bottom right thumbnail. Sigh.

Good point. I checked in my Catalyst Control Center for my Radeon 7950 card. Indeed Video settings had the following turned on:

- Use Automatic deinterlacing

- Enforce Smooth Video Playback

In the 3D settings antialiasing was set to override application settings.

I turned off of them off.

The hover scrub still messes up the video images when I move my mouse over it (See my previous post, second image top right icon) but no crash yet.

In another thread I received the tip that I can turn off hover scrub in the flyout menu. for now I leave it on of course. I keep you posted.

Anybody have a solution to this issue?

My main playback window looks the same way when I add a transition or effect to a clip. Everything renders out normally but it's really hard to work on a project this way. Hover scrub works as it should, for me. I'm sure this is related to the issue in the thread.

I'm not sure this will help anybody but I was having the same problems as the OP - inverted and b+w video previews in the source window and bins.

There isn't a whole lot of info out there about this that I could find, however what worked for me after reading this was:

Open up Catalyst Control Center - Go to Start > Video > Quality > and basically turn off the options for video enhancement, de-noise, enforce smooth video playback etc. I turned all these off and i'm currently not having the problems that I was before.

I recently installed another 4Gb's of Ram and a new graphics card - Radeon HD with 2Gb's DDR2, I'm on Windows 8 fwiw, and found I started having these preview issues after previously using an Nvidia card where I had none. 

Hope this helps.