That's no bug. Thats actually how they look like, as FS renders them always pointing at the camera only a part is visible, the other part is sticking inside the ship. If coders could change that it'd be great, but i think it'd be pretty hard to do.
Till then, you can use the latest version of my new engine effects, which partially fixes that bug.
Clicky the problem might still be there, but it won't look as extreme, and you'll have to be at greater angles for it to look crappy.
This is the thing i referenced to in
Various things were fixed in v1.2, especially on the terran trails
btw
