While the middle mouse button is held down, all character and screen movement is frozen.  Tab key works to toggle mouselook on and off but middle mouse button is useless for anything.  Changing button settings has no effect.  Neither does installing fresh.  I have had this issue with several different Mac machines and four different multi-buttoned mice from different vendors (Logitec, Kensington and Targus).

I found some people talking about this from years ago, but it appeared the problem was fixed?  I wasn't able to find any recent mention of this in the forum, and surely I can't be the only one since it has occurred on several different machines/configurations.

I have this same issue and it's really, really bad.  It's extremely difficult for me to read things because so much of the letters are cut off.

I have had the same issue on a Powerbook G4 running Tiger, on a 15" Macbook Pro 2.8Ghz running 10.5.5 and 10.5.6.  I have had it on an MBP 17" 2.93, and currently on an MBP 17" 3.06 running 10.5.8.

No matter if I fresh install everything including the OS, I can't get it to go away.

There is actually one other game I have seen this with, also an online game, it's called Deliantra and it's the exact same text issue.  As if one or both edges of each letter is chopped off.