OK... now this is getting weird.
Normally, I have the texture flag set at 256, for speed. This is what I get following norc's above method:

After this, (since it didn't work correctly) I adapted semar's suggestion, and used a flag value of 260 (256+4 - fast textures+alpha). However, doing that gave me this:

Since that didn't work either, I removed the 256 flag and just left the 4 (alpha) flag. This is what I got for trying that:

All of these problems I think are very strange, and I don't know why they happen. What exactly is going wrong here?
I have an nVidia GeForce 2 MX (32MB) with the latest nVidia official drivers (29.42).
Normally, I have the texture flag set at 256, for speed. This is what I get following norc's above method:

After this, (since it didn't work correctly) I adapted semar's suggestion, and used a flag value of 260 (256+4 - fast textures+alpha). However, doing that gave me this:

Since that didn't work either, I removed the 256 flag and just left the 4 (alpha) flag. This is what I got for trying that:

All of these problems I think are very strange, and I don't know why they happen. What exactly is going wrong here?
I have an nVidia GeForce 2 MX (32MB) with the latest nVidia official drivers (29.42).