Weirdo Graphic Problem

Hi everyone! I have a weird graphical problem. it appears in pokémon stadium 2 as well as in Zelda OOT. in Zelda, the picture of link in the menu is replaced by a white square. and in pokémon stadium 2, when i battle, there are white squares and thick white lines around pokémon name, pokémon picture, attack "list" etc. Does someone know how to fix this? I have never had this problem before I upgraded to Project 64 1.6. It looked perfectly normal before. Please help!!!!!!!!

Yeah, I'm using legacy pixel pipeline, but the problem is still there. Aren't there any newer versions of jabo's graphics plugin? I've got Jabo's direct3d8 1.6.
Specs:
OS: Microsoft Windows XP Home Edition Service Pack 2
Processor: Intel(R) Pentium(R) 4 3.40GHz
RAM Memory: 1024 MB
Graphics Card: NVIDIA GeForce 6800 Series GPU
Hard Drive: Enough

Oh, by the way, I can't get the mouse to work as an analog stick for (ex) Perfect Dark, James Bond 007, Mission Impossible etc etc. Could you please help me with that one too?