Go into this folder and file
"My Documents/SH3/Data/Cfg/main.cfg"
Make sure it reads this under the 'VIDEO' column and then save it and try rebooting it...
[VIDEO]
Resolution=1024 x 800
DynamicShadows=Yes
FullScreen=Yes
Synchronized=Yes
ParticleDensity=100.000000
TextureResolutionHigh=Yes
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