The generally accepted bible for Win32 is the Petzold book:
It's not online, but worth purchasing if you're serious about Win32, IMHO.
My first guess, if you're a total GDI/C++ newbie, is that you are probably creating a lot of Pens and Brushes. These are constrained resources in Windows. You can only create so many of them before you start to tax your resources. So either make your Brushes and Pens and Windows, etc all at once and re-use them, or dispose of them properly when you're done. I recommend getting a copy of "the Bible" (http://www.amazon.com/Programming-Windows%C2%AE-Fifth-Microsoft/dp/157231995X/ref=sr_1_1?ie=UTF8&s=books&qid=1252788457&sr=8-1) and reading the chapters in there about drawing.
EDIT: It doesn't sound like you're modifying your brushes properly, but since I can't see the code for MakeBrush, I don't know. You're probably creating a lot of brushes behind the scenes and you don't even know it. Seriously, get a copy of Petzold's book and spend an hour or two. You'll end up with more hair on your head later! ;-)
The classic is Petzold http://www.amazon.com/Programming-Windows-Microsoft-Charles-Petzold/dp/157231995X
Petzolds Programming Windows is probably a good start. It's very extensive.