Texture issues with SS 6.4

[isthatmycow]

I'm seeign sprites and poor texture quality when playing the game (I also have Steam), I modified the medieval2.preferences & default.cfg files as suggested, I've ticked them as 'read-only' but i still see no results, this is very frustrating. Anyone can help? I'll post the medieval2.preferences & default.cfg text so that maybe I madea mistake or someting :/

medieval2.preferences text:

[audio]
enable = 1
master_vol = 100
music_vol = 60
provider = Miles Fast 2D Positional Audio
sfx_vol = 100
speech_enable = 1
speech_vol = 100
sub_faction_accents = 1

[camera]
default_in_battle = rts
move = 50
restrict = 1
rotate = 50

[controls]
campaign_scroll_max_zoom = 30
campaign_scroll_min_zoom = 30
keyset = 0

[game]
advanced_stats_always = 0
advisor_verbosity = 0
ai_factions = follow
allusers = 1
auto_save = 1
blind_advisor = 0
campaign_map_game_speed = 15
campaign_map_speed_up = 0
campaign_num_time_play = 0
chat_msg_duration = 10000
disable_arrow_markers = 0
disable_events = 0
english = 0
event_cutscenes = 0
fatigue = 1
first_time_play = 1
gamespy_save_passwrd = 1
label_characters = 0
label_settlements = 1
micromanage_all_settlements = 1
morale = 1
mute_advisor = 0
no_campaign_battle_time_limit = 0
pref_factions_played = 0
tutorial_battle_played = 0
tutorial_path = norman_prologue/battle_of_hastings
unit_size = normal
unlimited_men_on_battlefield = 1
use_quickchat = 0

[hotseat]
autoresolve_battles = 1
disable_console = 1
disable_papal_elections = 1
passwords = 1
save_prefs = 1
update_ai_camera = 0
validate_diplomacy = 1

[network]
use_ip =
use_port = 27750

[ui]
SA_cards = show
buttons = show
full_battle_HUD = 1
radar = show
show_tooltips = 1
unit_cards = show

[video]
anisotropic_level=4
anti_alias_mode=off
antialiasing = 4
assassination_movies = 1
autodetect = 0
battle_resolution = 1366 768
bloom = 1
building_detail=highest
campaign_resolution = 1366 768
depth_shadows = 2
depth_shadows_resolution = 2
effect_quality = highest
event_movies = 1
gamma = 128
grass_distance = 75
ground_buffers_per_node = 4
ground_cover_buffers_per_node = 4
infiltration_movies = 1
model_buffers_per_node = 4
no_background_fmv = 1
reflection = 1
sabotage_movies = 1
shader = 2
show_banners = 1
show_package_litter = 1
skip_mip_levels = 0
splashes = 1
sprite_buffers_per_node = 4
stencil_shadows = 1
subtitles = 0
terrain_quality = custom
texture_filtering = 2
unit_detail=highest
vegetation = 1
vegetation_quality=highest
vsync=1
water_buffers_per_node=4
widescreen=0

default.cfg text:

[launcher]
kingdomsDir=%%
swapMenuBackground=true
swapMenuMusic=true
swapBAI=true
autoLocateLogFile=true
autoBorderlessMode=true
steamCheck=true
firstRun=true
steam=true
[features]
mod=mods/SS6.3
[log]
to=mods/SS6.3/system.log.txt
level=* error
;level=* trace
[io]
file_first=true
[video]
no_background_fmv=true
grass_distance = 9000
unit_detail=highest
movies=false
#windowed=false
#borderless_window=false
[game]
unlimited_men_on_battlefield=1
label_settlements=1
event_cutscenes=0
allusers=1
micromanage_all_settlements=1
advisor_verbosity=0
[misc]
show_hud_date=true
#remove the # in the next line if you want launcher to bypass straight to the last save when you start mtw2
#bypass_to_strategy_save=true

[Bamein]

Did you edit the bit map setting for your gpu by any chance?