Shit. I thought it might be this movie. I somehow saw it like 6 or 7 years ago but there's no way I would have remembered the name of it without looking it up...
I export stock UT2004 textures and then re save them as bitmaps for use in Max. In both max 6 & 7, .DDS files appear kinda milky when they are rendered.
Cool scene. Makes me think of Rage and Borderlands. Still banging on with 7. Hopefully get more time on this one now that I've moved into my new flat :D
On a related note, giraffes and gerbils both have the same number of cervical vertebrae - 7. On a more useful note, I did run across this while verifying that little bit: