I have just purchased the on sale game of the year deluxe edition from Steam and have played through the sewer level and left into the outside world. I had all settings on high (no AA) and land around me and in the distance did not all have correct textures. I found that disabling the rendering of far land made the textures appear. However, I then noticed that all textures were still not right. All textures are applied in giant rectangles and end abruptly and make the world look like a quilt. Also, the grass is extremely dark and I don't believe it is supposed to be like that.
Lowering and changing all settings did not correct the texture layout. My computer has up to date video drivers.
Here is an imageshack album I have uploaded to display the multiple graphical issues I am having with my experience.
http://imageshack.us/g/695/2011070200001i.jpg/