Color inversion?

[Gvaz]

Fraps:
http://gvaz.notsleepytime.org/screen...1-41-07-91.jpg
Me:
http://gvaz.notsleepytime.org/screen...0710002141.jpg
fraps:
http://gvaz.notsleepytime.org/screen...1-23-56-23.jpg
me:
http://gvaz.notsleepytime.org/screen...0710002124.jpg
Loading screen:
http://gvaz.notsleepytime.org/screen...0710002136.jpg
Fraps:
http://gvaz.notsleepytime.org/screen...1-40-32-55.jpg
Me:
http://gvaz.notsleepytime.org/screen...0710002140.jpg
Fraps:
http://gvaz.notsleepytime.org/screen...1-40-52-25.jpg
Me:
http://gvaz.notsleepytime.org/screen...710002140a.jpg

Here is my dxdiag (which includes system specs)
http://gvaz.pastebin.com/7uMi796n
here is my error.log file
http://gvaz.pastebin.com/jve0weee

I had a long post written up but apparently you're allowed to start making a new post while not logged in (and apparently you're not auto logged in after verifying your account, unlike most forums and easy to do with vbulletin) and I clicked preview post and was unable to retrieve my ten minutes of work so I'll make it short and sweet.

I got this game on GreenManGaming on one of their deals for like a penny or whatever it was, I already had a boxed copy. Happens the same on a boxed copy or otherwise. As you can see from errors.log, the greenmangaming version is 1.1. You can see the issue I'm having for yourself. Not nearly as important, but I'm getting a stutter, or a hang lasting less than a second every 5 or so seconds, repeatedly without end.

Things I tried:
Turning off hardware physics (I have an ati 4890)
Turning down settings (i get like 30fps maxed hahaha)
Different monitor(s) & cables
older drivers. 10.2, 10.3, 10.6 all same issue.

However:
1. Fraps is displaying it fine, my card is not overheating.
2. No other games do this, with a steam account and boxed games, I have tons of games. Not one game gives me this. The only offender is Cryostasis.
3. it worked fine (other than performance issues) on my 512mb 8800gts before it died out. I did not get this issue.
4. Thought it was a steam overlay issue, but apparently it wasn't. Same issue happened outside of steam influence. Steam overlay was also inverted with weird colors.

Any ideas?

Some things I googled:
Perhaps an issue with SM4 & ATI cards, turning from DX10 (SM4) to DX9 (SM3) supposedly fixes it? I haven't tried it yet because that's the last thing I'd like to do.
Maybe a gamma issue w/r/t SM4/ATI? It's too much of a pain to change that on my monitor (though i'll give it a shot?)