I have a same problem. With some settings all of textures in game are incorrect, this screenshot has been made in the best case.
I have GeForce FX5200 with the newest Forceware 169.21 drivers on WinXP.
This is a czech version of a game and how can you see there is a problem with text too (there are no letters, only white boxes).
have you trired uninstalling the graphics driver and then installing the latest again? Also, there might be some setting that is messing things up in your graphics control panel. How does other OpenGL based games work (for example: Doom3, Prey)?
It is strange that the menu is messed up since it consist of pretty much plain vanilla OpenGL.
I've uninstalled graphic drivers, then deleted NVIDIA folder with the rest of files, restarted computer and installed drivers again and it's working! You were right, problems were caused by some advanced settings in control panel. Now it's OK. Thanks!