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It's chunking all over the place on some of our fastest dev machines.

Make sure you didn't go in and set the detail levels to "Ultra" for everything. I haven't gotten the game yet, but what I've read tells me that the "Ultra" detail level is only for next-generation video cards with 512 megs or more of video memory. Most of the video cards available today have only 128 or 256 megs of video memory, and the "Ultra" detail level won't fit on those cards because it pumps up to 600 megs of textures to the card and will cause chunky gameplay if you try. The "High" detail level is meant for 256 meg video cards, and it compresses certain kinds of lightmaps or normal maps (don't remember which) before sending them to the card. The Ultra level compresses nothing, hence the huge memory requirements.
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Tony Fabris