I have experienced what looked like this problem before on an ATI 9800 Pro. For me it was to do with anti-aliasing/aniso filtering options. Have you tried mucking around with these options, turning them on/off?
My friend has the same card as you (GF4 Ti 4200) and it was working with anti-aliasing and aniso off, although he never tried turning them on/never had this glitch.
Hope this helps. :thumbup:
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