[jonc2006]

what i ment was since you are using an ATI card, you need to use a d3d or software plugin because most ATI users are having trouble using the OGL plugins due to a driver issue that is present in some of the more recent catalyst drivers as you can obviously see in that thread i linked to. if you want to use the OGL plugins, you must downgrade your driver version to catalyst 7.4 or below, that is the only way i really know of right now. i have heard there are beta drivers that seem to work fine but i cannot say with 100% certainty that they do in fact work or not. again, check that thread for more info on all this.

for the settings you have there, disable hi res textures, and set texture filtering to either 4 or 0. compatibility should be either a 2-3-1 like you have or a 2-2-1. if your video card or display drivers have the ability to force FSAA or AF on applications make sure they are turned off or set to application preference/application controlled. from what i see there you also have shader effects in use, have you tried disabling them and testing the game to see if this visual glitch you are getting still happens?

edit- btw i forgot to ask, what game fixes do you have enabled?