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i have tried dxwnd and dgvoodoo, both to no avail - the game otherwise runs fine, it is just that around the tree sprites there is a kind of transparent box that is empty except for whatever the background is and these boxes extend onto the track even at times and just overall are not great to look at - what else can i try?

i try playing with direct3d deselected but the game wont start then as i just get 16bit screen mode required messages which persist even if i use compat settings to set color as 16bit
Did you choose the "ATI Radeon 8500" as the videocard when using dgVoodoo?