Clayp, I have pretty much all the graphics options checked, including environmental effects, and I have a nice video card (ATI X1900XTX 512M). I use F11 to activate the external camera -- I play on 92% difficulty, but I gotta have that cam for screenies. Then I swing the camera around with the arrow keys and the left mouse button, sort of like flying a plane in a flight sim. I do this especially when the light is nice, or when something interesting is happening. CTL F11 snaps a shot, of course.
Try playing with different graphics settings. Unfortunately, in general you have to restart SH4 for many such settings to take effect. And they do have a significant effect on the look of your shots.
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