Hmm...
I played Halo a little, then figured I'd try out this build. Here's my prgress so far:
1) Set up my settings; all good features on, D3D, 1280x1024, turned off PCX32, forced AA and 16x anisotropic filtering with the nvidia panel, also enabled AA in the launcher.
Result: When the pilot screen and the main hall came up, the lower half of the screen was obscured by extremely rapid flickering. The top half was completely visible, the middle was partially visible, the lowest part wasn't visible at all. I tried to take a screenshot, but that just got the whole screen.
2) Exited FS, removed AA from the control panel (but left it on in the launcher) and started the current CVS compiling in the background.
Result: BSOD
3) Rebooted computer, started the build back up again with the same settings.
Result: Seemed to work fine for the interface.
4) Started the build with AA on in the nVidia control panel again.
Result: The flicker problem again
5) Started the build again w/o AA in the nVidia launcher, went into the lab, selected Herc Mark II LOD 1, clicked exit
Result: FS2 CTD'd
6) Started FS2 again
Result: All the images looked blocky, as if filtering had been turned off.
7) Restarted FS2 a few times
Result: Images have continued to be blocky.
Edit: Okay, the flicking problem seems to be in CVS, so it's probably not this.
Edit 2: The blockiness problem also occurs with CVS, although I don't know if it can be caused by it.