Ok, I believe I have narrowed the problem down to drivers. After clean install of windows, I installed the factory drivers from the CD that came with the card. I am not aware of the driver version at the moment. Then I had the problems of playing video files (WMP/BSplayer crashing).
I fixed that problem with installing the drivers from NVIDIA's website. Now I can watch video files (.avi and .mpeg), but now when I enter a game, I get the same colour distorstion (as the post in hardwareworld [yes another gay vid card thread].)
I have posted pictures from GTA:Vice City and NFS Underground.
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