Hi,
I believe you are right and it's an issue with new graphics cards and the older game.
I've been playing and heavily modding DC for about a year and have luckily not had any graphics issues. Plays OK full frame on 27" monitor at high res. I've used on both Nvidia Geforce GT 520 Win7 & GT 610 and WinXP.
Two possibly related issues are: Are you using the high Res ship models? In the folder dc/sims/units/highpolyunits there is a readme with instructions on how to use them. I didn't figure that one out for awhile.
Also if using Win7 play DC in XP mode which for sure should help with the overly sensitive mouse cursor.
I hope you are able to resolve the issue.
-Tim
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