This is not the same as the bug where you only see triangles on the map or all of the states are always grey. I'm referring to the bug where textures look smeared or broken up.
1) Get the latest drivers from your website.
2) Find the file polmachine.ini and open it in a text editor
3) Set these values:
ForceTextureUpdate=1
DeviceType=1
BehaviorFlags=68
This will reset the values in your PolMachine.ini to the default values. The first option will rebuild all your textures with the new drivers. The other two reset the initial settings to make Political Machine start in hardware acceleration mode, so that if the new drivers give you more functionality, you can get more hardware acceleration.