The colors are funky. When I first logged in, the Palette was kinda messed up, but all my ships were blue as always. "Okay," I thought, "that's interesting...". Then I logged out and back in, and all my ships were white. Then they were blue again. Now they're all YELLOW! What's up with this palette?

sure its not just you?

Is this happening in both opengl mode and directx mode for you?

I can't really use DirectX anymore. I get the "keyboard freezes" all the time. And any time I'm in DirectX mode, winamp skips like crazy.

Well, I think it is your drivers crapping out and need to know if directx mode renders the scene fine or not.
I tried both opengl and dx mode on my computer and everything seemed fine.
I tried a gffx5600 and it seemed fine too, but with a version of drivers that is probably different than yours.

quote: "Overclocked to... 350Mhz core/590Mhz RAM (1180Mhz Effective)"

Such things can happen if you overclock your video card.
Wrong colors/freezes of any sort.
Set it down to the card standard and see if it happens again.

This weirdness started to happen before I overclocked. So I'd rule that out.