Hi,
Ive had this problem with my ATI Radeon 8500LE and I found a solution.
In the OFP Resistance Prefrences turn off the D3D Hardware T&L....just use the Direct 3D option instead.
Apparently the cause of the problem is unkown to BIS and ATI. Though there is speculation that it is an issue with directX 8.1.
Hope that solves your problem.