It IS the GPU, you NEED to lower your settings or remove some high poly mods.. the game is causing the card to run out of memory.. Could you post your specs?
My specs are:
Intel Core i7 @2.93 GHz
6 GB RAM
ATI Radeon HD 5670 1 GB
I'm using the maximum performance power profile in the Windows control panel and also Process Lasso to get the best performance.
I'm running GTA at a 1280x720 resolution with medium settings overall. The only high poly mods I have are police cars, all other traffic is normal.
Downgrading to a lower version of GTA IV (I believe that's what you meant) does fix it for some people. The 18.104.22.168 patch causes the game to run like crap on some systems, but high poly car mods only make it worse. I never had any problems with my GTX 560 though, but a lot of people with weaker cards do have texture problems. My old GTX 260 had the same problem. GTA loves to eat up RAM and VRAM. Adding car mods makes this problem exponentially worse. The only real fix is to not use mods, or to get a better system.
Other topics already created with this problem:
I actually meant downgrading LCPD:FR to the previous version is what fixed the problem. Given my specs and the fact that downgrading LCPD:FR fixed the problem, that suggests that the problem lies with 0.95RC1.
Edited by Calvert, 18 November 2011 - 06:19 PM.