Thats classic driver (texture specifically) corruption.
Uninstall your video card drivers from the add remove control panel, also do this with the device manager. If you need instructions let me know what version of windows you have (looks like XP though - right click on my computer - click properties - i think its under advanced or hardware tab - then click on device manager) onve device manager is loaded go to display devices and hit the + to show them - then right click on the display device and hit uninstall...
Then reboot and get to the intel sight to find the latest drivers for your onboard video - install them and reboot.
Hopefully this advice will help.