FFXI pixelation

[Halion]

I haven't noticed issues with anything else including other 3d games; I have a ATI Radeon HD 2600 XT and the drivers weren't changed in correlation with this happening. It doesn't happen everywhere, so far I've only explicitly noticed it as pictured in that one spot, the rest of the time it's like a certain distance in front or behind me as I'm running is pixelated. Characters seemingly aren't affected.
Any insight would be greatly appreciated!

[Kurokikaze]

lol that looks weird and cool at the same time... Like the 8-bit world is trying to take over.

Are you sure you're running at the correct background resolution?

Er.. Try uninstalling your ATI Catalyst/drivers and anything pertaining to ATI. Also delete the folder C:/ATI after you're done uninstalling. When thats done download the latest Catalyst/Driver bundle from the website and install it. Set everything to Application Default then try running the game before maxing your settings in the registry (assuming you do that).

[Halion]

Good call~ thanks man :D

[Auspice]

I had the same issue when I was using the latest(from a few months ago) Catalyst drivers. Currently running 9.1 and everything runs great. If you're still having issues, try rolling back to 9.1!