The 11.10 WHQL drivers worked for me right away, but I was able to replicate blue textures by (a) activating large textures, and, separately, (

Blue textures appear when you are attempting to run your rig at a higher quality setting than it is capable of with the WHQL drivers.
The "culprits" in order of decreasing payback are:
1. delete any custom config files you've been using prior to these drivers
2. decrease the texture cache from large to small if you've been running it a large
3. lower the resolution
4. lower AA and AF settings
5. overclock your rig
6. defrag your rig
7. reduce background programs
I dont know how much VRAM you need to run at resolutions above 1280 x 1024, large texture size cache, and/or customized non-default quality params in config files. All I can tell you is that on my rig, which is below minimum specs, I have ZERO texture popping, texture tearing, and crash defects running at 1024 x 768, 8x AA, High AF, Vsynch OFF (FPS runs between 45 and 60), without steps 5 - 7 above. Including 5-7 above, I'm able to run at 1280 x 1024 defect free. Keeping in mind that I have an OLD HD3870X2 card and Phenom II CPU. So if you meet specs, you should be able to run at least this high in quality.
Hope this works for ya!
Now that the game can be played without config headaches, I'm gonna replay it without the console enabled so I can play it without that pesky "achievements have been disabled" screen, lol.