Thanks for your answer RE. Tiles are actually half size (reduced to 0.5000). You think that it might also cause this problem?
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I can't say I've seen that happen with reduced model size. There is definitely something odd going on. Sometimes, when the game is a bit stressed it will load the mesh and the texture in two different places. I've seen this happen with Mannequins, but it does not happen very often - and I've never seen this occur with statics.
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If you select all the tiles and draw a collision box on them, I think this might solve your problem.
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