Instead of in the place of transparent textures, I am seeing white textures. So when ogden moves, he has white spots on his body on the sides of his clothes that disappear and reappear about 1 pixel wide. This also happens on the Jotun and many pieces of EOTN armor.
Destroyer weapons also have white lines where the AA is drawn instead of a transparent texture.

Looks ok, but if we zoom in on the destroyer offhand in the normal resolution, you can see how bad it looks.

I know it's not my video card or computer, or at least I assume it isn't, because I've tested all of these different situations and still have the same effect.
0xAA
2xAA
4xAA
1680x1050 resolution
I have tried 3870 video card and 8800 Ultra.
Vista 64bit, Vista 32bit, XP 64bit, and XP 32bit. All of them see the same issue.
I have tried different graphical driver sets, including the latest and beta releases, and older releases.
I do NOT see the problem on any non EOTN type textures, only on things related to EOTN. I have reinstalled the game from my DVD disc and I have also completely downloaded the game through the client, both see the same issues with EOTN pieces.
I haven't taken a screenshot of all the situations but the main ones that are completely obvious are:
Destroyer weapons and items.
The Jotun armor.
Ogden's armor and dwarves armor.
Many eotn armor sets, especially those related to assassin, mesmer and warrior.
The destroyer minipet and some destroyer enemies.
If you zoom in all the way on the object or item, the problem does not exist, it's generally from a distance with the exception of destroyer weapons and ogden's basic armor.
Here is a small picture of the destroyer minipet as an example, and also a screenshot of my guild wars settings + computer specifications. I would like to also state that the problem does not happen with ANY other game that I play and that I am not new to computers technically or as a user.

The problem is not new and has been happening since I installed/downloaded EOTN and once again it ONLY happens on EOTN related things. Everything else in the game looks perfect and pristine.



Sorry if the picture is small, as the dots and lines only appear at a far distance most of the time.
Currently:
3.6ghz intel Dual core conroe (e6600 scythe infinity cooling, over 8 120mm yate loon case fans)
XP 32bit home edition, legit with all required windows updates, with latest DirectX updates
2GB DDR2 ram at 800mhz. (g.skill 4 4 4 12 timings, 2.1voltage)
ATI radeon 3870 with 7.11 drivers.
Asus Commando motherboard.
dual LCD monitors, 22" flatron wide LG, and also chimei cmd 221d 22"
raptor 150GB hard drive