Video drivers are up to date, and the game runs fine with all settings on high. Not much drop in FPS from anything. Video card is a nVidia 250 gts.
I did however mess around with the texture options. I didn't notice it was set on medium. Changed that to high and unchecked the option for conversation field of focus (can't remember the name of the actual option), but afterwards everything seemed to start showing up fine again.
PS- Thanks for the help, you all.