Yeah, that's right.
I know this problem has been adressed a few times, though I can't get rid of it. And I kinda know the source of my problem.
Until recently I've been playing with an ATI Radeon X1300 and Grim Fandango worked perfectly.
Then I bought a Nvidia GeForce 8600GT and when I decided to play Grim Fandango again...well, at first I've been using the 169.21 drivers and the game would crash immediatly after the opening sequence. So I tried older drivers, 158.something and 163.75. Well, the game did work now, but it was all ****ed up in Software mode and wth Hardware acceleration only the characters still look ****ed up, as you can see. I already sold my old graphic card, because the new one didn't seem to cause any problems with my other games, so yeah, I can't even go back to that for Grim Fandango. Dunno what I should do. It looks like this with and without patch, with and without compatiblity mode and turning off Anti Aliasing didn't help either.