So the game likes to improperly load textures for some reason, it seems? I'm not exactly sure what might be causing the issue as I've gone through the gambit of uninstalling/reinstalling and then doing fancy things like upgrading my drivers and such.
Pictures follow:


Debug.err below:
DebugMessage: Version 0.00.000 last updated on: 11-08-2012 18:55
DebugMessage: Entering WinMain
Debug Message: Command Line:
DebugMessage: *********DXDiag info follows.*********
System Info
Time: 11/8/2012, 23:44:31
DirectX Version: DirectX 11
Machine Name: JUUKIKANJUU
Operating System: Windows 7 Professional 32-bit (6.1, Build 7600) (7600.win7_gdr.120830-0334)
Languages: English (Regional Setting: English)
System Manufacturer: INTEL_
System Model: DG965WH_
BIOS: Default System BIOS
Processor: Intel(R) Core(TM)2 CPU 6600 @ 2.40GHz (2 CPUs), ~2.4GHz
Physical Memory: 5120MB RAM
Page File: 1368MB used, 4753MB available
Windows Dir: C:\Windows
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: NVIDIA GeForce 7950 GT
Manufacturer: NVIDIA
Chip Type: GeForce 7950 GT
DAC Type: Integrated RAMDAC
Key Device: Enum\PCI\VEN_10DE&DEV_0295&SUBSYS_22191682&REV_A1
Display Memory: 1779 MB
Current Display Mode: 1280 x 1024 (32 bit) (60Hz)
Monitor Name: Generic PnP Monitor
Monitor Max Resolution:
Driver Name: nvd3dum.dll
Driver Version: 9.18.0013.0697
Driver Date: 10/2/2012 16:20:00
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: Speakers (5- Wireless Stereo Headset)
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: USB\VID_12BA&PID_0030&REV_01>?&MI_00
Manufacturer ID: 65535
Product ID: 65535
Driver Name: USBAUDIO.sys
Provider: Microsoft
Driver Version: 6.01.7600.16385
Driver Date: 7/13/2009 17:51:23
Type: WDM
Other Drivers:
Acceleration Level: 1
Cap Flags: 0
Min/Max Sample Rate: 0, 0
DebugMessage: *********END dxdiag info.*********
DebugMessage: Using 0 samples for multisampling.
DebugMessage: Game Resolution: 1280 x 1024 (windowed mode)
DebugMessage: HAL (hardware vertex processing)NVIDIA GeForce 7950 GT
DebugMessage: Presentation Interval: Immediate.
DebugMessage: Back Buffer Bit Depth: X8R8G8B8.
DebugMessage: 32-bit z-buffer using 24-bits for the depth channel and 8-bits for the stencil channel.
DebugMessage: ** Checking Direct3D 9 Device Capabilities ************************************
DebugMessage: A full-color cursor is supported in hardware at high resolution modes.
DebugMessage: Bump mapping is supported.
Debug Message: Device is now ready
Debug Message: GFX-THREAD: DISABLED
DebugMessage: Border size reported as 6 by 28
DebugMessage: Shell initialization complete
DebugMessage: Elemental: Fallen Enchantress is activated.
DebugMessage: ***** Initializing Game *****
DebugMessage: Loaded font Arial-13
DebugMessage: Loaded font Trajan Pro_lu-16
DebugMessage: Loaded font Trajan Pro_lu-13
DebugMessage: Timer Frequency is 0 23ba4f
DebugMessage: Initializing sound card.
DebugMessage: initailizing bink
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Mods\Screens\*.dxpack
DebugMessage: Create anchor mwin
DebugMessage: Load texture atlas.
DebugMessage: InitializeWorld
DebugMessage: Loaded font Tahoma-13Bold
DebugMessage: Loaded font Trajan Pro-17Bold
DebugMessage: Loaded font Trajan Pro-21Bold
DebugMessage: Loaded font Tahoma-32Bold
Debug Message: Attempting to allocate memory of size: 53477376 bytes
Debug Message: Allocation successful
DebugMessage: Create popup manager.
DebugMessage: InitializeMWinStripEngine
DebugMessage: InitializeMWinDeferredTextRenderer
DebugMessage: Initialize effect system.
DebugMessage: InitializeSpellRepository
DebugMessage: InitializeTriggerManager
DebugMessage: InitializeMusicLayerGroupManager
DebugMessage: InitializeMultiplayerClient
DebugMessage: Loaded font Tahoma-16Bold
DebugMessage: Loaded font Trajan Pro-19Bold
DebugMessage: Loaded font Trajan Pro-16Bold
Debug Message: Total objects deleted: 1
Debug Message: Attempting to allocate memory of size: 53477376 bytes
Debug Message: Allocation successful
Debug Message: UnzipHelper attempting to read file with uncompressed size of 38092568
Debug Message: Total objects deleted: 0
DebugMessage: Begin LoadCoreXMLData3
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Items\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Race\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Stamps\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Tiles\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Tiles\Shadows\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Units\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\RaceTypes\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Effects\*.xml
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Quests\*.xml
DebugMessage: LoadCoreXMLData finished 3
Debug Message: MapManager registered 6 files on disk
Debug Message: MapManager registered 112 files on disk
Debug Message: MapManager registered 4 files on disk
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Maps\*.xml
Debug Message: MapManager registered 0 files on disk
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Maps\TacticalMaps\*.xml
Debug Message: MapManager registered 0 files on disk
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Mods\Data\Maps\*.xml
Debug Message: MapManager registered 0 files on disk
DebugMessage: No files found matching mask C:\Users\Kitty\Documents\My Games\FallenEnchantress\Mods\Data\Maps\Tactical\*.xml
Debug Message: MapManager registered 0 files on disk
DebugMessage: LoadCoreXMLData finished
DebugMessage: Create setup screens.
DebugMessage: Loaded font Trajan Pro-24Bold
DebugMessage: Loaded font Tahoma-15Bold
DebugMessage: Loaded font Tahoma-16
DebugMessage: Loaded font Segoe UI Semibold-13Bold
DebugMessage: Loaded font Trajan Pro-32Bold
DebugMessage: Loaded font Tahoma-11Bold
DebugMessage: Loaded font Arial-11
DebugMessage: Loaded font Tahoma-19Bold
DebugMessage: Loaded font Segoe UI Semibold-17Bold
DebugMessage: Loaded font Segoe UI Semibold-16Bold
DebugMessage: Loaded font Segoe UI Semibold-11Bold
DebugMessage: Loaded font BankGothic Md BT-12
DebugMessage: No string tables in C:\Program Files\Steam\steamapps\common\Elemental Fallen Enchantress\Data\English\*.tips
DebugMessage: Set mouse.
DebugMessage: Set update timer.
DebugMessage: Loaded font Arial-11Bold
DebugMessage: Loaded font Trajan Pro-29Bold
DebugMessage: Loaded font Trajan Pro-15Bold
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 449380 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 450285 kb.
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 458969 kb.
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
DebugMessage: Tried to enter unprintable character: 8
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 477958 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 487239 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 482148 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 482926 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 483950 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 483991 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 486481 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 489988 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 490024 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 490045 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 490192 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 490475 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491991 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 490979 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492027 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492126 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492249 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492261 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491216 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491294 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491360 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492478 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491466 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491548 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 491667 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 493137 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492457 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 492814 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 493228 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 510115 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 493359 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 509935 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 510107 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 510119 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 500891 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 519147 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 519323 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 501657 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 501768 kb.
Debug Message: CreateSovereignWnd: Unit Type Changed, Memory Usage at 502865 kb.
Debug Message: Generating portrait: Portrait_Ayyno Myaen_4268733-548_565641898
Debug Message: - Current Game Settings -
Debug Message: Selected local player faction: CustomFaction_Felinoid
Debug Message: Selected local player sovereign: Ayyno Myaen_4268733-548
Debug Message: AI players:
Debug Message: Sovereign_Markinn, KingdomOfGilden, Difficulty: AIDiffLvl_Easy, Team#: 2
Debug Message: Sovereign_Ceresa, EmpireOfResoln, Difficulty: AIDiffLvl_Easy, Team#: 3
DebugMessage: Loaded font Trajan Pro-11Bold
DebugMessage: Loaded font Verdana-13
DebugMessage: Loaded font Tahoma-12Bold
DebugMessage: Loaded font Tahoma-9
DebugMessage: Loaded font Tahoma-11
Debug Message: InitializeWorld: Map File: Custom-SmallMaps-Karrazan's Fist
Debug Message: Stamp Quantity: 7
Debug Message: Land Mass Size: 0
Debug Message: Land Mass Min Spawns: 0
Debug Message: Land Mass Max Spawns: 0
Debug Message: Forest Quantity: 3
Debug Message: Mountain Generation Option: 1
Debug Message: Map Random Seed: 1352440371
Debug Message: ---------------------------------------------
Debug Message: ---------------------------------------------
Debug Message: Map Size: Small
Map Style: Balanced
Debug Message: Sectors: 5 x 4
Debug Message: Tiles: 80 x 64
Debug Message: Tile Vertex Resolution: 5 x 5 vertices
Debug Message: ---------------------------------------------
Debug Message: ---------------------------------------------
Debug Message: ---------------------------------------------
Debug Message: ---------------------------------------------
Debug Message: NOTE: The extra tiles don't appear to be in MapData at this point.
Debug Message: Map Generation Complete
Debug Message: Placing random goodie huts...22 requested
Debug Message: Placed 22 GoodieHuts
Debug Message: Placing random goodie huts...32 requested
Debug Message: Placed 32 GoodieHuts
Debug Message: Placing random elemental shards...17 requested
Debug Message: Placed 17 elemental shards
Debug Message: Placing random resources..22 requested.
Debug Message: Placed 22 resources
Debug Message: Placing random resources near player at 43, 39...
Debug Message: Player faction Kingdom of Gilden is set to difficulty Easy
Debug Message: Placing random resources near player at 25, 12...
Debug Message: Player faction Empire of Resoln is set to difficulty Easy
Debug Message: Placing random resources near player at 59, 21...
Debug Message: Placing random NPC camps...
Debug Message: WARNING: PlaceTurnZeroNPCCamps failed to find a tile for all the NPC camps while adhering to starting location restrictions (only placed 19 out of 20), will try without those restrictions
Debug Message: Placed 19 NPC camps
Debug Message: Placing random starting quest locations
Debug Message: Placing goodie huts around starting points
Debug Message: Placing goodie huts around starting points
Debug Message: WARNING: PlaceStartingPointGoodieHuts for Monster Lairs could not place Lair_SyndicateOutpost near player 0 starting position
DebugMessage: Loaded font Verdana-13Bold
DebugMessage: Error. String Not Found. Table: EmpireTreeCategoryHeaderEntryWnd String Name: Category1
Debug Message: Generating portrait: Portrait_Ayyno Myaen_4268733-548_-1275871292
Debug Message: CMapViewWindow failed to set DXSAS UI parameter: Threshhold in effect: edgedetect becuase the DXSAS engine was not initialized
DebugMessage: Player_List setting size 181 x 0
Debug Message: InitMapGfx Started...
Debug Message: InitMapGfx finished.
DebugMessage: Loaded font Trajan Pro-13Bold
DebugMessage: Loaded font Tahoma-13
DebugMessage: Loaded font Trajan Pro-13
DebugMessage: Loaded font Tahoma-19
DebugMessage: Loaded font Times New Roman-21Bold
Debug Message: Generating portrait: Portrait_Unit_Spearman_Altarian_-93799095
Debug Message: Generating portrait: Portrait_Unit_Light_Altarian_1766945803
Debug Message: Generating portrait: Portrait_Unit_Archer_Altarian_689803999
Debug Message: Generating portrait: Portrait_Unit_Heavy_Altarian_-1736191360
Debug Message: Generating portrait: Portrait_Unit_Mage_Altarian_-1905452561
Debug Message: Generating portrait: Portrait_Unit_Henchman_Bard_487896064
Debug Message: Generating portrait: Portrait_Unit_Henchman_Shieldman_-822371142
Debug Message: Generating portrait: Portrait_Unit_Henchman_TorchBearer_-1469150990
Debug Message: Generating portrait: Portrait_Unit_Magic_Medium_Altarian_1262092361
Debug Message: Generating portrait: Portrait_Unit_Sion_388191155
Debug Message: Generating portrait: Portrait_Unit_Magic_Heavy_Altarian_-1089625095
Debug Message: WARNING: CBackgroundNode::Set did not find texture: Gfx/Backdrops/DynastyBackground.png
DebugMessage: Loaded font Trajan Pro-37Bold
DebugMessage: Loaded font Segoe UI Semibold-12Bold
Debug Message: Creating terrain gfx...
Debug Message: FinishInitMapGfx started.
Debug Message: WARNING: CResourceManager::GetEffect could not find file: gfx/fx/fxo/post_camerashake.fxo
Debug Message: CResourceManager::GetEffect found source file for effect: C:\Program Files\Steam\steamapps\common\Elemental Fallen Enchantress\Gfx\fx\post_cameraShake.fx (This will be compiled at run-time and used)
Debug Message: CDXSASEngine ERROR: EnableEffect failed to find effect edgedetect
Debug Message: FinishInitMapGfx finished.
Debug Message: WARNING: Could not find animation sub pack 'M_SpiderMount_SpellIdle_Animations' for animation pack 'SpiderMountAnimationPack'