First thing I would go is reboot the server & the desktop. I imagine you've done that. I also assume you've already Googled & searched Geo Net for this issue?
I have seen this issue occur but rarely. It's always been fixed with a reboot of my desktop. But I do a lot of development work so it's not uncommon to corrupt my OS.
Is this flyover Orthoimagery or something else?
What are your OSs?
Have you checked resource usage?
Next, is this a Server or Arcmap issue? I'd bet Server but I'd verify that Arcmap behaves the same on other desktops.
Is it all images or just some. Some might mean data corruption on the drive. Scan the drive for errors & replace the images that don't show.
( If all images are not displaying, I'd still scan the drive & try replacing one of them & testing it. But I'd probably do the next step first. This is more of a shot in the dark, cover all bases.)
Next, write down everything that has changed on the server (or desktop.)
Start trying to roll back changes.
Look for Windows updates that might affect video, memory, etc
I think SP1 was the last update for 10.1 but I'd still look for updates.
If still hunting, call tech support. I'd do this before I start rolling back changes.
Consider re-installing Server?
Good luck
