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Yes, when Blizz upped the texture resolution on characters, it put a real strain on my 5-box setup. Upgrading my Nvidia drivers to their latest release just made things worse (182.50), so, with nothing to lose, I tried their latest beta (185.68 ) and things are at least stable.
Before, I had my main window set up with higher rez textures, longer view distance, etc.. Now I have to be certain that each game instance has exactly the same settings (full low) or I risk a BSOD. I'm not ruling out that my card is bad (an 8800 GT 512MB), but Blizz upping their graphics has definitely put the hurt on my 32 bit XP 4 GB ram setup.
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Am having lots of trouble since 3.1 too.
Am using a GTX 260 and been running 4 clients without any problems pre-patch (one 1024x768 @ high settings and three 800x600 @ low settings). Well, now am getting lockups while doing the argent tournament dailies. At first its a few seconds freeze on all clients. Those freezes get more frequently over time and finally lead to texture clipping issues. After a while one or more clients will perma-freeze or crash.
My graphics card isn't overheating, it's running @ 60°C. I didn't change anything except of applying that crappy 3.1 patch...
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I run a 260. No better or worse pre/post patch. loads a lot faster though...
