T3d 2.1 Video Issue

Torque 3d V 2.1
System 1
Windows 7 64 bit
ATI Radeon HD 5770 (System 1)
System 2
Windows 7 32 bit
NVidia Quadro FM2500M (System 2)

I am running into a strange video problem with T3D 2.1. I have run in on two seperate systems and it comes up the same in both. I have also looked through the forum to see if anyone ealse has seen it, to no avail.

For exmaple, in running the FPS demo, the gun is semi transparent and as it is being moved it will go from being solid to being completly transparent. The same thing happens to the walls and other objects in the scene when you are running the demo. I have also created the FPS Tutorial with the same result. Recompiling the demo did not make any difference.

Playing with the video setting did not make a difference. neither did changing to full screen or windowed.

I did not see this with T3d 1.1

Any thoughts?

Thanks
Randy

I have a picture of the screen for the FPS Tutorial.