This is config.gm ! But whatever, i think i found out what is going on!
Today i was updating my Radeon X700 pro drivers. I was going to install omega drivers. But that's not important. After installation everything crashed out... 
(artifacts... itd). And when i gone to pretty normal working system i tried to turn on CG. And than i saw that what is on Your screen shot...
I had aslo problems with directX...
After 5 hours of reinstalling:
I went to
properties/features of screen(right click on deskop->features)
--->Settings
--->Advenced
--->solving problems
--->set it to full(i think you have it set to off, i am not sure of that... )
(it's in Polish)
Confirm and than restart your computer. Say me if that helped... 
Edit:
And turn off your
global v_fullscreen = 1;
to turn it of change 1 to 0
global v_fullscreen = 0;
i think i know what you mean..and for english's sake....
btw, for me it was ALREADLY FULL and i didnt do anything to it, so if anyone's one is not full and u dont understand.....
[img=http://img159.imageshack.us/img159/2408/lolig8.png]Shot at 2007-07-14
so sad..any other options?
