More 2d problems. sigh.

Thanks to everyone who helped me with my previous problem.. Problem I'm still having, using petes d3d 1.50 plugin.. I have extended filtering on, remove black boxes.. It works great for games like castlevania SOTN and stuff.. but I tried chrono cross and a few other games with prerendered backgrounds, and I get these horrible black outlines on some pieces of the backgrounds. also, the backgrounds have a squared look to them.. or something.

turning anti-aliasing 2x or 4x doesnt help when going to my detonator driver... any suggestions?

My system: 1.3ghz p4
256mb ram
nvidia geforce 2 400mx

btw, running the games on ISO..hoping to speed up things a bit.
thanks.