Well, It said it lagged so I should turn off lights... So I turned off lights and restarted graal, and surprisingly the pooie colors went away and it looked normal,
however I was not able to see lights after that. I am going to try to turn lights on and use 16 bit instead of 32bit with my ATI card and see if that works.
[edit]
I turned lights on and switched to 16bit.. It worked, but it was uncomfortably laggy.. So I decided to switch back to 32bit and turn lights off, even though I like lights.... a lot. But I prefer non-laggy, so now people know how to correct this problem in 2 ways I guess.
thanks