Well i have the same problem like the guy had in
this thread. I did turn of Catalyst A.I. in the Ati tray tools and the problem still occures when motion blur and/or bloom is turned on.
I have Ati radeon 9600 SE and latest 7.3 catalyst drivers plus omega drivers for ATI.
SOLVED:All i had to do was turn the Catalyst A.I. on low or high but not turning it off, kinda opposite then what should i do but it works
Oh and how do i turn off the FPS counter in the ATI because everytime i play penumbra it shows in the upper right corner.