Ok.... I finally found the cause of the strange scrolling watermarks.
BC you were right on the money with signal interference. It seems as though the KVM that I have was allowing for a signal from my one laptop that is connected to it to interfere with the display of the desktop computer. I thought the laptop was off, but it was quietly running, and it is Windows 7, so the display info was ghosting to the other video selection.
I double checked on this by booting the laptop to Linux Mint 17.1 off DVD-R and the Linux Mint Logo was on the screen. When going back to the Windows 7 system and watching on the screen for the scrolling of ghost images I saw the Linux Mint logo scrolling across the bottom portion of the display.
I shut down the laptop and the interference is gone.
Thanks for your assistance with this and I feel kind of embarrassed that I jumped to conclusions thinking it was something going on with that Windows 7 build that I never seen before. I guess reading about that one MS developer a few years ago who was able to slip code past the QC process was in the back of my mind when this started happening and I thought that maybe due to some odd reason my hardware combination was bringing to surface something hidden from most users view.
This totally explains why FRAPS and Screenshots via Print Screen were not capturing this.
Well at least if this happens to anyone else in the future, they will find a google hit for this now and know to check their KVM setup to make sure no other systems are running idle or on to interfere.