I figured it out..I had my DLLs set to the DX9 instead of the DX8a. Do a browser refresh to see the properly shaded version. No matter what I do I cannot get the DX9 video DLLs to work right in MED or WED. In WED the 3D view has a terrible framerate even with a GeForce 7600 GS 512MB card. DX8 Dlls work perfectly and still provide me with the "DX9 only" features like skins on models and whatever the other DX9 DLL only features were (in WED).