Did you try changing the texture quality setting? How about a lower game resolution?
Try running the game as administrator, and in the compatibility options disable desktop composition (in Vista/7).
Everything is transparentA couple people had missing or corrupt textures fixed by doing a clean re-install of the game.
Uninstall DKS or FoV/D2:ED, reboot, shut down all non-essential programs (especially anti-virus), make sure there is nothing left in the D2 folder (saves are stored elsewhere), then install DKS or D2:ED and FoV.
[PC] Support FAQ - The Dragon Knight Saga