Still nothing.

Oh well. It's most likely an unfixable driver issue.

Well I fixed mine! Yeah it was a driver issue for me.

I had the latest ATI drivers installed via AMD's catalyst center installer. I was finally able to extract the terminal output. Along with a bunch of other errors, there was this one:
err:winediag:X11DRV_WineGL_InitOpenglInfo Direct rendering is disabled, most likely your 32-bit OpenGL drivers haven't been installed correctly (using GL renderer "AMD Radeon HD 6670", version "1.4 (2.1 (4.4.12967 Compatibility Profile Context 14.20))").

I uninstalled the ATI drivers and rolled back to default openGL drivers. That didn't work; after re-extracting the game wouldn't even launch.

Then I used Mint's Driver Manager to switch to fglrx drivers, and the game now runs fine.

I use the open source drivers.

Have you tried installing the fglrx drivers? I don't know what the package is for Arch. For latest ubuntu/mint it's fglrx 2:13.350.1-0ubuntu2

Ok, so Manjaro has an auto installer for the display drivers, and installed the catalyst one, and uninstalled the open source driver, and now Flatout 2 works!

Thanks for the help everyone :)

ahahha, OMG i really just LOLed, how many people can say that they just did it and just write it down.

BTW I remember once at EZTV they were talking about a show called Blackout and one guy asked for a brief summery about it. The 1st reply was a guy who said "is this show about the KKK or the current weather in america."

Here's a link for the interested, funny.

Glad you finally solved the issue :D Enjoy your game!