Strange texture overlays, skewed gfx, misaligned cursors

[Wrestlevania]

I bought Penumbra as part of the Humble Indie Bundle and I'm having some problems with the in-game graphics.

The game starts up fine, all the menus work and look correct, but in-game I'm seeing some strange effects happening. This is mainly that predominant world textures seem to be thinly overlaying the player's view point (this might be intentional though?), but also that the interaction cursors are only showing up about 2-3 inches below items/objects when I look at them.

I have an Nvidia 7800GS AGP(!) card, the latest drivers, and am playing at 1280×720 resolution. Every in-game graphics option is set to either "On" or "High" by default it seems, plus I've set Anisotropy and Anti-Aliasing both to ×4 manually.

Can anyone help?

[jens]

Turning off Bloom in graphics might get rid of it or maybe it is depth of field that you can turn off. It can also help to play at a 4:3 resolution instead of widescreen.

Finally, if you really make sure that you get the latest drivers from NVIDIAs website, and uninstall the old driver, reboot the computer and then reinstall the new driver, you can make sure it is completely up-to-date and that should make the problem go away.

[Guybrush Threepwood]

Yeah, I got this in the Humble Bundle, and I was like, "okay, this is sort of low-end graphics, but god damn, it's still scary." Then I saw the trailer for it.
Where's that game? It was totally different.
EDIT: I can upload a screenshot so you can see what I'm talking about, but not right now, as I have to go to work. I'll be back in roughly 5 hours, though.

[ski]

I'm having the same issues as the OP, except my video card is an ATI Mobility Radeon 5650.