FF11 nasty pixelation of clouds/lightsFollow

I am having issues with lights and clouds looking awfully pixelated. The light sources above the crossroads just outside the residential areas in Jeuno (the one with a big light box coming down, above that pointed tarutaru-sized stone decoration) look like they belong on the NES. Other lights from lamps, etc, look poor as well. The clouds are a bit better, but not a lot - they look pretty silly. I'm not at home computer right now but here are my specs as best as I can remember:

nVidia Xtasy geforce 3 ti 200
Athalon 2300
1024 RAM
160 GB hard drive, less than 1/3 of which is being used
Windows 2000

All the settings for FF11 are on maximum currently. On a side note, I get unplayable slowdown when a Sandstorm occurs. I have to turn weather effects off to continue playing. All problems listed have never abated for any reason (in case you were wondering about frequency).

If you need any more info let me know.

This is caused by the setting in the "FINAL FANTASY XI Config" labelled "Texture Compression" (under the "Textures" tab). If you have this set to "High" (which is actually the worst setting), then your lights and clouds will look terrible. On a 64MB card such as yours, you probably want it set to "Low". You can try "Uncompressed" for the best visual quality, but it may cause slowdown on 64MB cards.