nuggetz,
Thank you for the instructions. I did it and it resolved this graphics problem.
1. Go to your desktop Arma II shortcut, right click on it and select 'Properties'
2. Under the 'Shortcut' tab, go to the 'Target' slot and at the end of it type -winxp after the quotation marks.
It should look something like this: "C:\Program Files\Bohemia Interactive\ArmA 2\arma2.exe" -winxp
3. Click 'Apply', then 'Ok'
Hope this helps for all.