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Grainy visuals - SPUD

Level 2
I've been using my brother's Rift for a week and I loved it so I bought my own 2nd hand from Cex. Anyway on mine there is a really bad grainy effect on low level scenes (but not jet black scenes). I've tried all the suggestions about disabling spud but it has zero effect with my headset. The regedit hack says to create UseSpud and set the value to zero. But the value is already zero after I create it. Am I missing something?