Figured this was the place to post..
I installed gold sprinter on my computer (athlon 1800+xp, 512mb, Radeon 9500Pro, Catalyst 3.2) and on the second level.. well look at the attached screenshot :) the game was still playing behind the huge pink rect. I've had problems with higher Catalyst versions so I haven't installed them.

Yes, this is a known problem with the latest Radeon driver. Older Radeon drivers don't cause this problem. The developer has already been made aware of this problem, so hopefully they may be able to find a workaround for it.