You know, I'm beginning to think that the "problem" I am reporting is not really a problem but simply the way the game is. I still hope I'm wrong, but you can help me: please look at the edge of the explored area in
this screenshot (concentrating on the top right corner) and tell me whether the dithering looks this grainy on your computer. I was sure that the very rough trasition from the visible to the "shaded" region was a result of my misconfiguring my machine. Now I'm not so sure.
The reason this surprises me so much is because this effect was handled so much better by the infinity engine in BG2. So is IWD2 a step backwards in this regard? Is there a way to turn the proper BG2 shading back on? Please say yes....