Probably necrobumping this but I am having the exact same problem with my graphics in Final Fantasy. This problem is only occurring since I downloaded the update on April 17, 2006.

My screen res is set to 1024 x 768. I have a GeForce 6200. I rolled back my graphics drivers to the version nVidia released in December 05 (when I was not having this problem). I changed my registry key to some higher hexidecimal values.

No dice. I still get blinking white blocks around certain NPCs, other players and monsters. When someone summons an avatar, my whole screen goes white until the avatar is released.

Did anyone find a resolution to this problem before?