I neglected to mark my other post with "question / problem" which was asking for help, so I am posting this here since I cannot correct my mistake or delete my old post and submit a new one. Here is my thread: TOEE Graphic Glicthes: characters and objects flickering and textures not drawing.

Preface: I do not know how to mark this post as a solution. Does anyone know how?

Solution: I had to install an old Nvidia driver to get this game to work without the flickering / flashing / invisible characters / textures not loading / only the blue ring at their feet visible. Details Below:

Go here to download old driver from Nvidia's Archive: http://www.nvidia.com/Download/Find.aspx?lang=en-us

Get this Driver (It worked for me): GeForce 275.33 Driver June 1, 2011

System: Nvidia Geforce 9800GT, Windows XP Professional Service Pack 3 (SP3)

Caution: For the first time in my life I had a great deal of difficulty replacing my current video card driver. I had the most current at this time (296.10) and wanted to replace it with an older driver as a test to see if it would fix my graphic glitch problems. The uninstall failed. the reinstall failed. I had to use a driver cleaner and registry cleaner in safe mode to get the faulty driver uninstalled and the older driver installed, but in the end, the PhysX driver would fail to install every time. I have not found a way to get the PhysX driver installed but the game doesn't need this feature so I am done messing around. I'll probably just end up restoring my partition backup after I have had my fill of playing "Temple of Elemental Evil" and be done with it.

Hope this helps someone! Cheers! :)

It's pretty obvious how to do it, but you just can't mark your own post as a solution.
Anyway, good job finding a working driver, I'm sure that'll help the next one with the same problem.