Graphics corruption

I'm running the CD version of Overseer.

When I first ran 1.00, the graphics were fine. However, the little animations from examining things are not there (ie. examining the blackjack note, opening the green book, examining the wallet early in the game)

When I upgraded to 1.04, those animations are fixed, but there are significant graphics corruption to the 2d panels (ie, top, sides, bottom, mouse cursor, etc). Does anybody know what's wrong? I tried to find a solution here, but it didn't seem like anybody had the same problem.

I'm tempted to run 1.00 and leave out the little animations, but it seems like some animations can potentially be important for clues. For example, the blackjack note animation shows tex's speech saying 21 every direction. I'm sure there are other similar stuff later on in the game. I COULD just read faqs if I get stuck, but it seems like it's a waste.

Does anybody have any workarounds or solutions?

I'm running ATI Radeon 9800 pro, Catalyst 5.11, Athlon 3000+, Windows XP.
Just a wild guess here, but try the older Catalyst versions (4.2 and 4.4 specifically), using Driver Cleaner in between. I've heard of various problems with later driver sets, so give it a try.
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I'm running a Radeon 9800 XT with Catalyst 5.13. I found this solution on another forum which worked for me. Edit the Tex.ini file and change the line LockVideo=-1 to LockVideo=1.
http://www.unofficialtexmurphy.com/phpb ... .php?t=626