I'm running a Ti-4600 with the 28.32 drivers and I can't seem to get the texture compression errors to manifest themselves.
The sky in Q3A looks the same whether TC is on or off.
From your screenshots, something is incorrect. There will be a very noticeable change, especially in Q3, with TC OFF and ON.
The most common mistake is with NVMax or RivaTuner having the S3TC tweak set, or having a similar tweaker disabling TC in OGL period.
The second most common mistake is using the incorrect TC cvar in Quake3. id Software did change the cvar between patches, so without knowing which cvar your version uses, it's easier to just throw both in an autoexec.cfg so it will work under all conditions:
set r_ext_compressed_textures "0" // Texture compression OFF
set r_ext_compress_textures "0" // Texture compression OFF
//set r_ext_compressed_textures "1" // Texture compression ON
//set r_ext_compress_textures "1" // Texture compression ON
Just paste those 4 lines into your autoexec.cfg and move the "//" comment lines to the pair you want ignored (shown above with TC OFF). Quake3 will ignore whichever is improper for your version of Q3.
jb-
You can bind a key for screen shot.. just shift-~ for console and type like BIND F12 SCREENSHOT or whatever. FRAPS screenshot seems to work well as does Hypersnap. Just keep in mind with the 8500 that some AA modes will result in only a partial buffer capture... some of the newer ATI drivers hand screenshot proggies a pointer to the AA super-bitmap rather than the final display buffer.. so what you get is the 1/4 upper left part of the display.