Basically, the LOD texture seems to be displaying what appears to be the bump map channel, getting close the normal texture displays fine

http://cloud.steampowered.com/ugc/594702185003552047/6BCD35001BC340DE54DE70FC17146187689E7573/

Maybe just driver problems?

Playing on "High"
ATI 6950 2GB running Catalyst 11.10
8gb ram
intel Q9650 @ 3 GHz
Vista 64 bit