After seeing the posts here, regarding the problems with ET, Nvidia and the Fedora Core 1. I decided to install ET on my system with the last ET update. All is running well, and I have not seen any strange textures at all. As before that I ran it with RH9 and no problems.
Fedora Core 1 - 2.4.22-1.2132.nptlsmp Kernel
Nvidia - Kernel Module 1.0-4620 (beta)
ET - Version 2.55