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The game seems to be drawing the 3D items with a red framework under the texture for the model and the red is showing through at points (say a dozen or so for a torch in the distance). Is there a way to correct this? I can provide screenshots if that would help.
Yeah, some screenshots would help. It's hard to tell what you mean just from the description.
This only happens with foreground objects, not walls and also appears on the HUD map. Here are some shots. The first is Maria from the City of Arx and the next 2 are in the Crystal Caves next to the barrels.