Texture Problems In Heroes of Might and Magic V

Greetings Geeks -

I recently decided to reinstall HOMM V. Well, it seems I have some texture display problems. The textures are blurry, low contrast, low detailed, and washed out.

I searched around and found this to be the case with many users. I could not locate a workable fix. I would think it is a problem with the video card loading textures. I did try the most recent drivers, no luck. Here is my rig:

Phenom II X4 at 3.6
GTX 460SC 768 megs o' ram
4 gigs o' ram
Windows 7 32 bit

Any ideas?

Thanks!