Apologies for image size, but I took four to show seperate things happening.
First Image: Text Occlusion On Main Menu

Second Image: Text Occlusion (Different Sort) On Startup And Game Screens
Note that these lines are constantly in motion and/or vanishing, making the text unreadable with all the pieces vanishing and reappearing many times per second.
Third Image: Strange Holes In Stellar Objects (also Text Craziness at bottom)

Fourth Image: Ship Textures Refuse To Obey Laws Of Physics Like Law-Abiding Citizens
Debug.err File:
Debug Message: Version v1.1 last updated on: Mon Apr 24 19:03:49 2006
Debug Message: Could not find a TGN Serial No.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 4/29/2006, 21:37:33
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: VALUED-B8142DE8
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: Sony Corporation
System Model: PCV-RZ24G(UC)
BIOS: Award Medallion BIOS v6.0
Processor: Intel(R) Pentium(R) 4 CPU 2.66GHz
Physical Memory: 1024MB RAM
Page File: 360MB used, 2617MB available
Windows Dir: C:\WINDOWS
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: NVIDIA GeForce 6600 GT
Manufacturer: NVIDIA
Chip Type: GeForce 6600 GT
DAC Type: Integrated RAMDAC
Key Device: Enum\PCI\VEN_10DE&DEV_00F1&SUBSYS_21191682&REV_A2
Display Memory: 128.0 MB
Current Display Mode: 1024 x 768 (32 bit) (60Hz)
Monitor Name: SONY SDM-S51
Monitor Max Resolution: 1024,768
Driver Name: nv4_disp.dll
Driver Version: 6.14.0010.8421
Driver Date: 3/9/2006 15:29:00
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: YAMAHA AC-XG WDM Audio
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1039&DEV_7012&SUBSYS_8127104D&REV_A0
Manufacturer ID: 1
Product ID: 100
Driver Name: yacxgc.sys
Provider: YAMAHA CORPORATION
Driver Version: 6.13.0010.3154
Driver Date: 9/19/2002 22:19:56
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0
Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Game Resolution: 1024 x 768
Debug Message: Running in windowed mode.
Debug Message: HAL (hw vp): NVIDIA GeForce 6600 GT
Debug Message: D3DPRESENT_INTERVAL_IMMEDIATE
Debug Message: Refresh rate: 0
Debug Message: Bit Depth: 32 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: A full-color cursor is supported in hardware at high resolution modes.
Debug Message: Border size reported as 6 by 32
Debug Message: RGB in format 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now windowed.
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 9e8cd630
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: No string tables in C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods/*.str
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Gfx\*.png
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Gfx\Race\*.png
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\sfx\*.wav
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Music\*.mp3
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Event Music\*.mp3
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: * Collectors Edition *
Debug Message: Set mouse.
Debug Message: Set update timer.
Debug Message: Clear data definitions.
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\Techs\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\ShipComponents\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\ShipDefs\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\PlanetImprovements\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\TerrainColorSchemes\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\PlanetDescriptions\*.xml
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for PirateShip. ***
Debug Message: Found existing ship type with class name: Ranger
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for Starbase. ***
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\ships\*.shipclass
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\Anomalies\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\Events\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\UPIssues\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\Invasion\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\PoliticalParties\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\StarTypes\*.xml
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\StarbaseModules\*.xml
Debug Message: Reading Star Names
Debug Message: Reading Star Names... Done
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\CustomMaps\*.gc2map
Debug Message: No files found matching mask C:\Documents and Settings\valued friend\My Documents\My Games\GalCiv2\Mods\Data\Scenarios\*.gc2scenario
Debug Message: CustomRaceWnd: Cannot find OBJID CustomRace_Description_Text
Debug Message: CustomRaceWnd: Cannot find OBJID CustomRace_Tab_Homeworld
Debug Message: Creating Galaxy
Debug Message: Killing threads.
Debug Message: Kiling civs.
Debug Message: Killing ships.
Debug Message: Killing rallypoints.
Debug Message: Killing misc objects.
Debug Message: Killing stars.
Debug Message: Killing anomalies.
Debug Message: Killing space resources.
Debug Message: Killing colonies and planets.
Debug Message: killing scenario.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Galaxy Size Set: 18 x 23742059
Debug Message: Creating Random Map
Debug Message: Creating Random Map... Stars
Debug Message: Number of Unplaced Stars: 120.
Debug Message: Creating Random Map... Planets
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: *************** Failed To Place Planet ***************
Debug Message: Creating Random Map... Anomalies
Debug Message: Num Anomalies: 300
Debug Message: Creating Random Map... Resources
Debug Message: Creating Random Map... Done
Debug Message: Setting Game Options
Debug Message: Creating Civs
Debug Message: Altarian Republic: Intellence -> 77
Debug Message: Arcean Empire: Intellence -> 70
Debug Message: Torian Confederation: Intellence -> 85
Debug Message: Yor Collective: Intellence -> 83
Debug Message: Dominion of Korx: Intellence -> 79
Debug Message: Drath Legion: Intellence -> 80
Debug Message: Creating Civs... Done
Debug Message: Updating ZOC.
Debug Message: Updating ZOC.
Debug Message: Galaxy Create... Done
Debug Message: UIBeginGame called with g_ulLocalPlayerID = 10
Debug Message: UIBeginGameHelper: New Game Started
Debug Message: StackedShipsWnd: Cannot find OBJID Stacked_Logistics_Value
Debug Message: StackedShipsWnd: Cannot find OBJID stacked_Fleet_More_Button
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: OptionsWnd: Quit Btn
Debug Message: Posting WM_CLOSE message.
Debug Message: WM_CLOSE message received.
Debug Message: GameUninitialize start
Debug Message: Killing Galaxy
Debug Message: Killing threads.
Debug Message: Kiling civs.
Debug Message: Killing ships.
Debug Message: Killing rallypoints.
Debug Message: Killing misc objects.
Debug Message: Killing stars.
Debug Message: Killing anomalies.
Debug Message: Killing space resources.
Debug Message: Killing colonies and planets.
Debug Message: killing scenario.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Clear data definitions.
Debug Message: Killing Galaxy: Completed
Debug Message: WorkAreaBack.png not cleared 1 counts left.
Debug Message: GameUninitialize end
Debug Message: Device not cleared. 4 counts left.
Debug Message: D3D not cleared. 1 counts left.
Debug Message: Destroying Window.
Debug Message: Main Shell terminating normally