School Tycoon blinking screen?

Hi, I dug out my old school tycoon game the other day and decided to play it on my new Windows 7 computer. I searched for updates and downloaded them all then played the game and the top half of the screen keeps blinking/ flashing. It also, I don't know how to describe it but when I move my cursor (which is in a pencil shape for this game) into the top half of the screen then whenever that part of the screen blinks you will see a load of pencils where I have moved the cursor to. This is also the same for any boxes that pop up during the game in the top half of the screen. I hope this makes sense! Is there any way to resolve this? Thanks!