Disable visual themes doesn't really make a huge difference for me, I found.
Compatibility mode Win98/ME: Video runs upside down, Instant Action CTD immediate and banding not fixed.
Compatibility mode Win2000: Video totally scrambled, Instant Action CTD immediate, but banding problem is solved.
No Compatibility mode
Video totally scrambled, Instant Action works, but CTD after flight, but banding problem is solved.
Antialias and Anisophiltropic setting also don't seem to make a difference for me.
Note that I'm running WinXP Home SP2 and GForce 6500.
Not having the banding is nice, but having a stable running sim, to me, is probably better.
Ripcord
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USN/USMC -- when it positively, absolutely has to be blown up overnight.