Artifacts while running Torque Game Engine 1.5.2 demo

Hello,

I was watching TGE demo (linux version).
Performance is quite good but i see something like this:

img454.imageshack.us/img454/1387/zrzutekranutorquegameenyn1.png

System spec are:
Hardware:
PIV 2.8 Ghz
512 GB ram
Gigabyte Radeon 9600 pro 256 MB
Abit IC7-G motherboard

Software:
gentoo testing,
kernel 2.6.23-gentoo-r3 #2 SMP PREEMPT
xorg-server 1.4.2
ATI Catalyst 7.11 Proprietary driver

Played with xorg.conf but didn't helped.
Is this issue is well known, is there any solution?