Guys,
Go to the SHIV forum (not the mod forum) and look at the stickied post "nVidia Tweaks for SH3/SH4". Check out the last page near the top where hcwolf9 posts a bunch of fixes and fps enhancements via nHancer, which is a free download. By turning on "Aniso. sample optimization", he says that it will get rid of the effects that you're dealing with.
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