Hmm, well, Ati just released new drivers yesterday

. So, aside from that little oversight, yep everything is up to date.
It's only the bigger textures/images (menu backgrounds, level background) that look like this. Everything else (smaller sprites) are perfectly fine, so I'll just live with it and hope everything looks good when I submit
Thanks for replying
[edit] After playing with the filter options for the texture load w/o any change, I found forcing Mipmap detail options for my card gave me clear sprites.
._.