This seems to be a problem with the shaders...and only happens with some video cards....some being ATI cards in my experience....
To fix it is quite simple...
1. Install the game from the CD.
2. Download the official 1.02 patch:
Mirror 1: http://www.megaupload.com/?d=IWUY33LH
Mirror 2: http://www.4shared.com/file/wJ_SSH1w/sr2pc102.html
3. Install the patch.
4. Click the start menu...and click Run...
5. In the run box type "regedit" without the quotations...and press enter.
6. Go to HKEY_CURRENT_USER >> Software >> Crystal Dynamics >> Soul Reaver 2 >> 1.00000
7. Double click the line called disablevshader and change the value from 0 to 1.
8. Click OK to apply the change and close regedit.