Strange - many items are rectangles...why?!

I have a strange problem. I ran Budokai on PCSX2 0.7, and many objects are kind of rectangles...it's hard to explain, so I'll add some screenshots.

Well, I saw screenshots of Budokai with PCSX2 0.7, and they were normal, so it must be something with me.

1st pic: rectangles...every item is inside a black rect, which should be (I guess) transparent
2nd pic: text is hidden behind a black (or white) rectangles
3rd pic: When a ball becomes a rectangle...not good..
4th pic: Main Menu with rects..
5th pic: My configurations..

My computer:
Intel Pentium IV 2.8 GHrz
nVidia Geforce FX 5200 :hdbash:
Windows 2k
Creative Audigy 2 ZS


Any ideas what to do? If any further info is needed (about my computer or whatever), ask me for it.

Thanks in advance,

Itay