Windows 2000 / NVIDIA GeForce 3
Run either FullScreenTest or FullScreenTest2, then ALT+TAB to force surface loss. The app will loop endlessly in the Volatile Image / back buffer code waiting for the surface to recover, which never happens. Theoretically, a VolatileImage should fall back to software in this case, but this obviously isn't happening.
Note that the loop in these tests has been commented out with a reference to this bug number, so you will have to uncomment out this code in order to reproduce the problem.