Ok... so this isn't perhaps the easiest fix to install, but I'm not really sure of a good way to package it.
We all know we can get FMS to run on WinXP, but our Vista and Win7 machines with NVidia graphics suffer from nasty flickering. So here's the fix...
Download the Application Compatibility Toolkit from Microsoft
After installing the toolkit, run the Compatibility Administrator from the Toolkit's program group. (64bit users should run the 32bit version of the Administrator)
Click the Fix icon on the toolbar, name the fix and browse to your FMS.exe file.
After clicking Next, check the mode checkbox and select Windows XP SP3 from the dropdown. Then check the following boxes in the lower selection box:
Now click Next, Next, Finish.
Click Save on the toolbar, and save the database with an obvious name to your FMS folder or Documents folder.
Finally, exit any running copies of FMS, then click Install on the File menu.
Now you can run FMS. Under Graphics select 32bit and make sure Mipmapping is turned on. You can enable Fog, Smooth Textures and Textures.
This works with all 8.5 compatible textures that I've tested.
Fly often friends... without the seizures this time!