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I tried popenhance and the "BYRNE" thing and my screen still looks like the attached image.

I'm running 32 bit Windows XP
NVIDIA GeForce GTX 460 SE

I'm not sure if I've ever tried playing it on this computer. I played it often on my older computers.
Attachments:
populous.jpg (414 Kb)
Did you Try running it in software rendering mode??
I switched and most if not all the graphical Glitches Went Away.