TGEA 1.7.1 Bug: resizing window with joystickenabled causes hang

Steps to reproduce:
using AtlasDemo

in scriptsandassets/client/prefs.cs set
$pref::Input::JoystickEnabled = "1";

If the demo is not already set to run in fullscreen
-start the demo, use ctrl-o to get options, check fullscreen, hit apply.
-close the demo

start the demo (should now start in fullscreen)

- use ctrl-o to get options, uncheck fullscreen, hit apply
- drag the window border
the application will now hang.

To recreate it on my machine I had to be very particular about having the app start up in fullscreen, which is why I am listing it as a step here.
On the machine of the user who reported the problem, it seems all window resizing causes the hang.

the hang is in GFXPCD3D9Device::beginSceneInternal()
where TestCooperativeLevel always returns D3DERR_DEVICELOST.

(sorry, posted it before writing the full description)