I also had this problem before... if put my texture settings on normal, after a while the screen will be corrupted like that. so i could only run on low settings.
now after installing the 1.05beta patch, i almost never had this problem... until i entered the cities.. big cities. even then not as bad as before. maybe bis patch fix a bit?
btw, a little bit of topic, why i cant set my texture setting higher than normal? is it like GRAW, where only a 512mb gfx card can set the texture setting higher than normal?
my system:
Pentium 4 3Ghz
Ati X1600 256mb AGP
1gb RAM 400 mhz