Beta 1.16 Graphical Bug with Distortion FX turned off

I was trying to turn down the graphical settings because I was getting crashes when things were getting too intense in Campaign battle 7 (lots and lots of Yootani rocket gunships and fighters of mine).

I turned off Distortion FX, and this is what the opening screen looks like. Running an ATI Radeon 6800 with most recent ATI Catalyst drivers.