More On NOLF
Some problems that can be experienced may be related to running DX8 (we're still using 7x). If you have Detail Textures enabled, the walls shouldn't look blurry at all. Also, both varieties of shadows should be working just fine on a TNT2 Ultra--I'm using one in this machine and I have the same drivers you listed.
Anyone experiencing severe performance issues can try disabling sound filters (which use up a lot of CPU time) and using circular shadows or none at all. You can also experiment with other options in the Performance menus. :)
From The Chatty
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2nd!!!!!!!!!!!!!!!!!!1111