Environment morphs, flickers and smudges

[Dryleg]

Downloaded the demo to my compaq laptop. When I move around the floor morphs and bulges upwards around me. It doesn't affect items, doors or closets who instead get covered by it.
The shadows in the first area flickers like mad between light and dark when I move.

*Update*
Further into the game I noticed that the environment, items and the lantern showed up in multiple layers (smudged and in different colors) in the dark areas, like looking at a 3d movie without the 3dglasses. (It gets better) when I got to the first monster a smaller duplicate of my screen showed up in the lower left corner while the main screen got completely smudged. And the monster was invisible...


I had the classic "fatal error render: 0" before but I updated my drivers and the game got "playable".
My graphic card was an ATI Radeon Xpress 1270 but after the update it changed to ATI radeon X1200. I updated it with a different program than the one recommended here so I'm wondering if i got the wrong driver
Iv'e turned off all the special effects and high quality graphics

(sure wish frictional games could score a console game deal, I don't see any other way I could fully enjoy this VERY promising game otherwise)