I keep running into brick walls. I've seen something like this before too, but not quite as extreme.

http://thenexusforums.com/index.php?showtopic=217277&view=findpost&p=1906545

Wrong egm file maybe?

At first glance it seems like the wrong textures are used, but that doesn't seem to be the case as I understand from the posts. Maybe try updating DirectX?