I tried a lot of things before I found this thread. WinEQ does not affect this graphical glitch. I have a:
64-bit
HP Pavilion dv7 Notebook PC
ATI Mobility Radeon HD 5470
AMD Phenom(tm) II P940 Quad-Core Processor
Windows 7
In order for the graphics to look decent I had to turn off the sky and the advanced lighting.
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