I had horrible results when I first tried the smudge tool (several versions ago), but after getting a new graphics card, it works fine. That was my first personal experience with the strange behavior that can be caused in Painter by a substandard GPU. Drivers matter, too, and sadly right now we can't automatically say to update to the latest Nvidia drivers since they have issues.
But if everything else is working fine, Sleek's theory sounds like a good one.