Did you search in the Test Patch forum? Everyone thank the LFS trolls, because that subforum is hidden now!
Stegy, if you get that bug, do a test for me. Change the screen resolution to anything else and back IN LFS. Use a resolution not far (distance) from your regular, so it would be easy to get back. It was the temporary fix for me.
There is another interesting thing I found. When I still had this bug, I also had it in LFS 0.3H. The difference was no white screen, only the FPS was very low (2-4). In the later stages, I found a pattern: LFS stutters at 2-4 FPS for a ~15 seconds at a time. It does this for 2-3 times and then the textures go "white". IIRC I drove FXR in WE1 and got stuttering 3 times during one lap.
I used Catalyst 6.5 for a very long time and this problem occured around test patch U20 or so. I changed to 6.11 a while ago and haven't experienced this bug again. This cannot be related to test patches, because I had same problems with LFS 0.3H!? Or do the VGA drivers rotten!? I have 9600XT too, btw.
I'll close this thread now, better read that one and continue discussing there.
It looks like you are running out of card memory. First thing is to reboot the computer, of course. If things are still wrong, reduce your screen res / disable antialiasing / remove any oversized sky textures.