I noticed an extreme amount of "smearing" in and around the Bronze Door Fortress. On one occasion it was so bad, the entire screen smeared and the game crashed. I noticed that anything "bright" (such as torches or the water mist) tended to smear most, so I kept my field of vision as low as possible and got out of there ASAP. I managed to grab one screen shot of my head and the forground (which originally showed a brighter foreground) smearing while I was making my escape:
I have not noticed any "smearing" anywhere else in the game. (Though, I have not yet been into the sewers beneath Hydlaa.)
My system specs are in my signature. Also note that I had to disable "Vertex Buffer Object" to run the client.
Thanks,
Bubba