Too be honest...maybe.
Firstly, does it work in standard FS2 mode? I.E. everything off.
Secondly, which build are you using? Try using the one from
this thread. It's fairly bullet resistant and I have had no complaints other than my D3D being fouled up(OpenGL works okay), but I think it on my end so try it.
Try converting the artwork to 256 colors and see if that has an effect, back it up first of course.
Basically what has gone one is this:
Default FS2(no new artwork) has a texture memory footprint of around 16.7 Mb. This is to be expected given that the top end card at the time of release was a 16 Mb Voodoo 3.
What certain community members have done is create massive amounts of really good art to make use of the SCPs graphical improvements. This causes problems because the are is 32 bit while the original textures are 8 bit, this means that the same texture(it's not the same, the gradients are smoother and other miscellanous things that I can't really notice because I don't spend hours looks for imperfections) takes up 4 times the space in memory. What this translates too is a good many of us can look at screenshots and wonder at the improvments but cannot take part in them because the memory footprint is too large for our hardware. Specular maps and glow maps alone almost triple the memory requirements, I say almost because glow maps can still be 8 bit as they are usually a few shades of a color on a black background. No effort has really been made, so far as I can see to control the rapidly ballooning hardware requirements. No offense to Lightspeed and company, but without compressed textures(which Lighty is vehemently against) many of us are left out in the cold.