Gmod Squares?

My Specs:

Nvidia GeForce 8500GT
Intel Core 2 Duo CPU E4500 @2.20GHz
Windows Xp 32-bit
RAM: 3582MB

For some reason, when there’s blood, it often shows up as red squares. It may sometimes happen to other props and stuff.

Picture: http://img193.imageshack.us/img193/8563/bloodma.jpg

More Pictures: http://img190.imageshack.us/img190/3359/squaresp.jpg

http://img35.imageshack.us/img35/2987/moresquaresj.jpg

Was the card built before the Orange Box came out? It might be missing OB Particle effects or w/e.
Also did you update your drivers?

Yes, I’ve updated my drivers today, but it still didn’t work.

Also, this never happens in TF2 for him.

[editline]05:38PM[/editline]

And I’m P90 the Pyro in the picture!

8500GT can handle the particle effects. That looks like a valve missing texture, as its reverted to wireframe. How odd.

I just told him to Verify HL2’s Cache, I got him to download some TF2 Blood, but it didn’t work. So I told him to delete it and Verify HL2’s Cache.

Got some more photos of my problem:

http://img19.imageshack.us/img19/6325/gmbigcity0006r.jpg

http://img269.imageshack.us/img269/5404/gmbigcity0002w.jpg

http://img269.imageshack.us/img269/8058/gmbigcity0005u.jpg

Ok, it’s fixed for him he put -dxlevel 81 in launch options. But I wonder why my old, 8400GS never did it but the 8500GT did.