I also have texture glitches in the elven and mage castles on my work computer. It doesn't bother me. It's definitely due to the integrated 96MB video card. But at home, everything looks good (512MB video card).
Shelma, with 256MB of RAM, it will lag with any video card. Even with 512MB, it still lags. Especially with the expansion pack. It's best to have 1-1.5GB.
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