Hmmm, interesting. What version of LAbVIEW are you using?
If I open your VI in 7.1, the option "smooth updates" is deselected and if I select it, the flickering goes away.
The flickering also goes away if I deselect "erase first".
So, try the following:
"erase first": NOT checked.
"Smooth updates: Checked.
Also try to see if there is an updated driver for your video card.