Here's my debug.err:

http://badken.com/games/Elemental/debug20100826T2028.err

and 3 screenshots showing the problems:

http://badken.com/games/Elemental/Elemental_2010-08-26_20-41-55-97.png

http://badken.com/games/Elemental/Elemental_2010-08-26_20-42-15-75.png

http://badken.com/games/Elemental/Elemental_2010-08-26_20-42-40-53.png

I have only played 1.05 and 1.06, but it has done this on both versions. I was hoping that the white tactical screen fix would be related, but apparently not.

When I turn antialiasing off, the game's graphics work fine.

-EDIT-

On a hunch I tried adjusting the "Anti-Aliasing Mode" in the Catalyst Control Center to see if that would have any effect. It did indeed.

With the Anti-Aliasing Mode set to "Adaptive Multi-Sample AA" (the middle setting, which I normally use) the problems described above occur with 2x, 4x or 8x AA in the game.

With the game set to 4x or 8x AA, and the Anti-Aliasing Mode set to "Multi-Sample AA" (the Performance setting), or "Super-Sample AA" (the Quality setting) everything works normally, as with AA turned off.

With the game set to 2x AA, neither Multi-Sample AA nor Super-Sample AA work properly, but instead of drawing nothing, or painting white, the Sovereign preview image is all black, and the map is all black. The cloth map appears to work normally with these settings.

Hope this will help you track this down, and for anyone having the same problem, try setting your Catalyst Control Center Anti-Aliasing Mode to Multi-Sample AA, the Performance setting, and use 4x or 8x AA in the game. Or just leave it off.