Regarding ATI Radeon HD problem - Questions for people with Problem

[Stravaganza]

Graphics card: Sapphire HD 2600 XT, 512 MB GDDR3, DirectX 10, PCI Express, 2x DVI, TV out.
Operating System: Windows 7 x64 RC & Windows XP SP3 x86 (VL)
Driver version: Catalyst Control Center 9.5
What errors you have encountered: Missing textures, stretching textures (Spiking triangles going nuts everywhere) & Oversized objects at random.
Oh, and the barrel in the ship at the start of EP1 is flickering out of sight, depending on the viewing angle.

Catalyst AI thing didn't work, but disabling the Steam overlay gave me the ground back in the arctic level. Still messed up triangles everywhere though.

Videos I recorded myself:
http://www.youtube.com/watch?v=IeswsXAle2Y
http://www.youtube.com/watch?v=LZ0EcXNcZDQ
http://www.youtube.com/watch?v=uKc7nEjwSEE
http://www.youtube.com/watch?v=tGJn7lkXY7g
http://www.youtube.com/watch?v=M3ir4cjIusM

hpl.log:

Spoiler below!

------- THE HPL ENGINE LOG ------------

Creating Engine Modules
--------------------------------------------------------
Creating graphics module
Creating system module
Creating resource module
Creating input module
Creating sound module
Creating physics module
Creating ai module
Creating gui module
Creating haptic module
Creating scene module
--------------------------------------------------------

Initializing Resources Module
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Creating resource managers
Misc Creation
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Initializing Graphics Module
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Init low level graphics
Setting video mode: 800 x 600 - 32 bpp
Init Glee...OK
Setting up OpenGL
Max texture image units: 16
Max texture coord units: 16
Two sided stencil: 1
Vertex Buffer Object: 1
Anisotropic filtering: 1
Max Anisotropic degree: 16
Multisampling: 1
Vertex Program: 1
Fragment Program: 1
NV Register Combiners: 0
NV Register Combiners Stages: 11
ATI Fragment Shader: 1
Creating graphic systems
Creating Renderer2D
Renderer2D created
Creating Renderer3D
Load Renderer3D gpu programs:
Extrude
Diffuse Vertex
Diffuse Fragment
Fog
Creating fog textures: Solid Additive Alpha
init sky box
Renderer3D created
Creating screen buffers size 800.000000 : 600.000000
Creating programs
CG ERROR : The compile returned an error.
-----------------------------------
core/programs/PostEffect_Motion_fp.cg(32) : error C5013: profile does not support "for" statements and "for" could not be unrolled.
-----------------------------------
Error loading: 'core/programs/PostEffect_Motion_fp.cg'!
ERROR: Couldn't create program 'PostEffect_Motion_fp.cg'
Dynamic loops in motion blur fp not supported, loading static instead.
RendererPostEffects created
Adding engine materials
--------------------------------------------------------

Initializing Sound Module
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Initializing OpenAL.
Trying to open hardware device... Success!
Device name: SB Audigy Audio [DF00]
Number of mono sources: 32
--------------------------------------------------------

Initializing Game Module
--------------------------------------------------------
Adding engine updates
Initializing script functions
--------------------------------------------------------

User Initialization
--------------------------------------------------------
WARNING: Language entry 'EventKeyInNoPower' in category '01_10_small_shaft' already exists!
Initializing Penumbra: Overture Episode 1
Version $Rev: 1789 $
Date $Date: 2007-11-13 03:43:19 +0100 (ti, 13 nov 2007) $
Trying to load vertex program!
Success!
--------------------------------------------------------

Game Running
--------------------------------------------------------
Loading collada for 'maps/level01_01_outside.dae' took: 403 ms
ERROR: Couldn't create SoundEntity 'unbreak_impact_snow_med.snt'
WARNING: Couldn't preload sound 'unbreak_impact_snow_med'
--------------------------------------------------------

Statistics
--------------------------------------------------------
Medium framerate: 48.783341
--------------------------------------------------------

User Exit
--------------------------------------------------------
Saving to config
Saving keys
Saving to config
Saving keys
Reset maphandler
Exit Player
Exit Button Handler
Exit Map Handler
Exit Game Message Handler
Exit Radio Handler
Exit Inventory
Exit Fade Handler
Exit Save Handler
Exit Trigger Handler
Exit Attack Handler
Exit Notebook
Exit Numerical panel
Exit Intro story
Exit Death menu
Exit Graphics helper
Exit Main menu
Exit Player hands
Exit Music handler
Exit Map Load Text
Exit PreMenu
Exit Credits
Exit Demo end text
Saving config
Exit Effect Handler
Exit Game
--------------------------------------------------------

Exiting Gui Module
--------------------------------------------------------
--------------------------------------------------------

Exiting Scene Module
--------------------------------------------------------
--------------------------------------------------------

Exiting Input Module
--------------------------------------------------------
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Exiting Sound Module
--------------------------------------------------------
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Exiting Graphics Module
--------------------------------------------------------
--------------------------------------------------------

Exiting Resources Module
--------------------------------------------------------
Done with tilesets
Done with fonts
Done with scripts
Done with particles
Done with sounds
Done with meshes
Done with materials
Done with Gpu programs
Done with images
Destroyed all textures
Done with sound entities
Done with animations
All resources deleted
--------------------------------------------------------

Exiting Physics Module
--------------------------------------------------------
--------------------------------------------------------

Exiting System Module
--------------------------------------------------------
--------------------------------------------------------

Deleting game setup provided by user
- Deleting lowlevel stuff.
Physics
Sound
Input
Resources
System
Graphics
Haptic
HPL Exit was successful!
Saving last config

|--Memory Manager Report-------------------------------|
|
| No memory leaks detected. Memory left: 0
|
|------------------------------------------------------|

Deleting ATI shader to 0
Deleting ATI shader to 0
Deleting ATI shader to 0
Deleting ATI shader to 0