Have tried turning on 8bit palletted textures by using RivaTuner
The 8-bit pallet checks got nothing to do with it, my computer failes it and it runs fine with no graphical glitchs. It's all to do with a new transparency option/optimisation in the updated geforce drivers however control over this option seems to have been removed.
One person reckons you can downgrade your drivers to version 77.77 to fix the problem, this might be a good temporary fix for the meantime.
by the way to clear things up a bit, 8bit palletted textures is supported by all new hardware, however its generally disabled because of performance issues/compatibility issues and the fact that it really should no longer be used. However it can be re-enabled with the correct registory setting, which is all rivatunner does. Im pretty sure the reason why voodoo cards supported it was because thats as high as they origninally went.
I'm going to go search threw my internet history to find the website i hadup about how to fix up the transparency issues and will post a better fix for it latter
(i seem to have lost it
at the moment). This problem is a well known recent issue with geforce cards and apparently and doesnt only affect FF8.
--- UPDATE ---
Well I suck, i couldn't fix it. I would say your only hope is to wait for newer drivers that fix it to come out. I've tried just about every option in rivatuner but none of them seem to make a difference. As for the transparency option thats for cards newer than the 6800 only aparently, i havent been able to find anyone with the 6800 that has been able to fix it.
if you want to try and fix it i would reccomend to search around over at
www.guru3D.com as there are alot of various tweak programs there. I might search around a bit more latter one but i wouldn't count on it, this problem doesn't affect me and my little bros gone off to use a different computer anyway.