Freelancer - 8 bit texures in full game? HELP

to have a weird problem with the new game Freelancer. I played the demo and loved it, went out and bought it and for some reason the graphics look completely different then the demo?! The characters look pretty good, but all the background textures look like they are 8 bit or something. Major blurry and squared color banding. Like OLD quake... I`ve checked the performance menu and all the detail is set on HIGH by default .. high textures and all. I even have 4xAA on and 4x ANIO and they still look really really bad. All the textures are low low quality.
Maybe a un-install and re-install will help? I`m tempted to re-download the demo and double check.. but if I had seen graphics like this in the demo I would not have bought it. So I don`t think my mind is playing tricks. Has anyone else noticed a difference in texture quality between the demo and full version??
I panicked and thought my video card was giving up the ghost.. but UT2k looks as stunning as usual. So its not that. (ran Dxdiag and all checked out fine)
My question is has anyone heard of this?
Not sure if you really need my specs since the demo looked fine .. only thing I`ve done between demo and full version of game was add a 160gig WD drive. (frys has killer sale $139 w/$100 rebate) Maybe something is loose in the case?.. Direct X 9.0 Det 43.20`s Audigy 1 card Tbird 1.4 not o/c 512 sdram 133 asus A7v mobo Leadtek 4400 128 meg o/c 305/620
Thanks for any suggestions or leads..

OMG .. it is the same.. While some may see it differently nevermind my post. I also checked the `reviews` of the game & looked at the sceenshots more carefgully. Yep. which`s the way it looks on purpose. The wall and floor textures are absolutly crap. (ps1 quality) Wonder why I didn`t notice this with the demo.. hmmm.
I`m still going to re-install the demo to see if there was any chagne.. I could yearly have sworn they where cleaner ordinarily looking.

In essence got to agree abut the demo though, I`m highly impressed with the looks & surprised that the mouse fondly fly is actually really playable. Not too impressed with only being able to take one mision at a time though.

controls arent very concurrently complicated like other space sim games. This is why I like it, it is a lot more simple and we don`t have to use EVERY key on the keyboard. And then (freespace!)
The interior textures are really bad thuogh..
The game is very addiuctive though.. like Diablo was.

seen such high poly models in a PC game. And the facial animations are fantastic. Eyes move, brows move, lips are in sync. I liked the simple game play also. Maybe after you play it for awhile you can post back and give us a review. JLc

res to see if I can do sometyhin about it.
Still a great game though.

For short check out the c.s.i.p.g.space-sim group.
They talk ALOT about their.
Great game.. havent gotten so far yet though (MOO3 also insanely taking time)