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My grandfather has Windows 8 64-bit and I installed Dungeon Siege 1 on it, it runs fine, though mine was the LOA expansion pack. You really don't need to have compatibility mode on when you run it, though you should run DSVideoConfig.exe in administrator mode then choose your graphics card, but not any that say TnL. As far as the texture problem goes, I haven't experienced that before, but I've always played using the expansion pack. Try installing the patch for the regular Dungeon Siege http://www.fileplanet.com/110187/110000/fileinfo/Dungeon-Siege-v1.1---v1.11.1462-Patch That may help, though I can't say that it could work with the Steam version. I've heard only bad things about the Steam version, I wouldn't be surprised if the issue came from there. You could try a No-CD/Fixed EXE as well, I use one because I lost my play disc lol.. Anyway, I hope this info helps