Your graphics drivers are corrupted. You are using ATi drivers, so I don't have too much insight into this, but from what I can tell, the line draw section of the drivers is toast.
Boot into safemode, remove the drivers, use "DriverSweep" (google it) to clean out the junk, restart and boot into Safemode with Networking (use F8 when your PC is booting to boot into Safemode) Download the newest driver release for your card, and install it. Restart and boot into your OS under normal operation mode, and play away. If that doesn't fix it, let us know.
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