It's got nothing to do with lightmaps since this is what UDK looks like when I start it up.
I just built a new rig and have a i5, 8GB RAM but still have my 7600GT which I'm looking to replace but I was using the 7600GT in my last rig and UDK was fine.
Now all my games look and work fine so I'm just stumped as to why this is happening in UDK since my GPU is not dying if I can play my games without any problems.
I'm using the Feb 2012 UDK build.
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I'll try an older build tomorrow and see if it helps.