Jaggies in Liquify

When zoomed in to work on a section of an image that is not a whole percentage magnification ie, 67% horizontal lines have jagged or pixelated edges.

All is OK with normal percentage magnification like 25%, 50% and so on. Testing shows this is only happening with full size NEF RAW files from a Nikon D800, no problem with NEF files from a D3 or D700.

The RAW files open and look great in ACR 7.1 Beta as well as Photoshop. Problem is isolated to Liquify.

Makes it a tad difficult to get exact positioning and control if straight lines are not straight as they are pixelated.

Running Windows 7 Service Pack 1

Intel 4000 graphics card with latest drivers installed:

Intel(R) HD Graphics 4000

Report Date: 5/19/2012
Report Time[hh:mm:ss]: 21:49:58
Driver Version: 8.15.10.2696
Operating System: Windows 7 Service Pack 1(6.1.7601)
Default Language: English (United States)
DirectX* Version: 11.0
Physical Memory: 16271 MB
Minimum Graphics Memory: 64 MB
Maximum Graphics Memory: 1696 MB
Graphics Memory in Use: 356 MB
Processor: Intel64 Family 6 Model 58 Stepping 9
Processor Speed: 3392 MHz
Vendor ID: 8086
Device ID: 0162
Device Revision: 09