Hi Sean, also are you possibly running on a virtualized system like Parallels on a Mac?

If so then by default it actually makes a smaller amount of video memory available to the virtualized program.

If you are running under Parallels, try going to the "Virtual machine configuration" options, "Hardware" tab, "Video" section, and move the video memory slider over to the right to make some more video memory available to MoI.

For example see here:
http://download.parallels.com/desktop/v5/docs/en/Parallels_Desktop_Users_Guide/22895.htm

If you are running under something like that, then possibly your current virtual machine settings are leaving MoI kind of starved for video memory so that it is not able to allocate enough texture memory on the card to hold the image.

- Michael