It is print tiling I would use the multiple artboard feature you might find it more flexible.
As far as he problem at hand have you tried moving the settings folder or resetting the Illustrator Preferences
The obvious work around would be to keep the tile preview off when working on the document. Then when you need to see the tiles for printing turn it back on. This sounds like a real pain but you may need to be aware of the foibles of using illustrator on your particular system and use a work around (which you discovered) to get work done until you resolve this issue. From what you have stated, and the symptoms I would start with the Tablet to see if you can eliminate the issue by taking it out of the equation. Also if you search this forum for issues with tools and Tablets you may be surprised the answers you find. I often do this first before posting a question. I seem to remember seeing others with sticking tools behaviors while using Tablets in past postings. If I find one which looks promising to resolving your problem I will post a link.
It doesn't appear to be a tablet problem....as it persists when i use a regular optical mouse. How do you clear the preferences?
Edit: Also, when i said page tiling, what i meant was print tiling is what causes this. So when i set it to show print tiling it goes crazy.