The green bits don't look all that bad to me, although the color is probably out of place for a Vasudan model.
I think the reason FS1 has them and FS2 does not may actually have to do with the fact that FS2 has no software rendering mode. I played FS1 recently and it seems that it only ever uses the large textures in software mode, even with the registry hack. I thought software mode actually looked way better than D3D and played the whole game in that; apart from the textures, you also got free glowmaps on everything and it generally ran pretty smoothly. Glide gives you glowmaps but not the large textures.