Your card doesn't seem to support non-power-of-two textures. I've got code to handle that - see the "parsimonous catalog failed" line and below - but I haven't actually, er, tested it. Lacking hardware that would exercise it is an issue, as usual.
Give me an hour, and I'll do a few tests.
Ah figures, my computer being a little over 6 years old now and all. I'll be more then willing to test anything you have that may need to exercise this kind of graphics card.
Edit: A new development that I'm hoping maybe you might have some idea on where it comes from. First off I can't see how DFA could do this but now Dwarf Fortress regardless of install (Vanilla install, old 40c install and 40-d install) has a different kind of oddity to the graphics.
Any Ideas what might be the culprit here? I bring this up here as it occurred after trying DFA. However, I honestly can't see how DFA could have changed anything espeically since all you do is copy the file into the DF directory then remove it to disable. Also the problem occurs with the DF debug exe as well.
Edit2: Never mind on this. A third reboot after this started (second did nothing) and some registry pruning (dwarfort references and old graphics drivers) it seems everything is now working fine.