Strange shader bug

Ok, I'm not the best at explaining things so I'm going to try my best here. I currently have two TSE executable files on my hard-drive. One is TSE_Demo, and it came along with the publicly available demo for the Torque Shader Engine. The other is simply TSE, and it was created in my /tse/example folder after compiling the engine from the current HEAD. Now when I run the TSE_Demo application, using the resources that came along with it, everything displays correctly and works beautifully. When I ran the TSE application I compiled myself (from the current HEAD as well as previous revisions) everything works ok until I come across the Blob object with per-pixel refraction. In the TSE_Demo the blob looks great, as can be seen in this screen:

www.oes-mod.org/pdf/good.jpeg

In the TSE.exe, the one I compiled from the HEAD, it runs into a strange bug causing it to be rendered to the screen looking like this:

www.oes-mod.org/pdf/bad.jpeg

Now I at first thought it was a shader/material/texture issue. So I moved the TSE_Demo application from it's default folder, into the /tse/example/ folder which had been created while retrieving TSE from cvs. I then moved TSE.exe from it's default folder (/tse/example/) into the folder that had previously been home to TSE_Demo.exe. I ran both applications from their new locations, and saw that the exact same error was showing up just as it had before. Everything was fine while running TSE_Demo.exe, even with the resources I had retrieved from cvs. However, TSE.exe showed odd results with the Blob and per-pixel refraction using the resources that came along with TSE_Demo.exe (which I downloaded from this site). As before, everything else was fine. So basically, I'm guessing it's not an error with shaders, materials, or textures, but is instead something in the source code itself. I'm not sure exactly what version of the source on cvs was used to compile TSE_Demo.exe, or I'd look for errors myself? Does anyone have any idea what may be wrong here? If not, does anyone know where I can acquire the source code used to compile TSE_Demo.exe? Thanks a lot guys. This is my first real post here by the way, so forgive me if I've done anything wrong, over-explained, or seemed critical. I love TSE and am very excited about it's future :)

Edit: I forgot to add what sort of card I currently have. I'm running on an ATi Radeon 9700 Pro, with driver version 4.8 (although I have tried quite a few other versions as well).