Arch, Smiff means for you to change from external to internal transforms or vice versa in the graphics plugin.
Just to be sure (since it appears you lost your n64 cartridge of MM), you know the sky changes with the time of day and the weather. On the second day the sky looks gloomy most of the time cause it is overcast and raining. Although your shot says first day... your shot does look a little dingy. The sky should be kind of blue and velvet on the morning of the first day. It would help if we could see what time of day you are at. Hence smiff wants you to change piplines to see if the time of day icon shows up.
And you still haven't said exactly what video card you are using, although you mentioned 21.88 drivers so I guess it's an nvidia card... but which one?
Ok, disregard some of what I said, I took too long to post. heh.