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not really sure about #1, I can't say that I have had that problem
as for #2
My G5 is not intell, but in H2.1 I can't work at all with ambient occlusion on. it just crashes repetitively... as you said it is useless.
personally I dont work with anything higher than "smoothed solid". with the "light map off" and "normal display" under AO.
It's the only way i've ever been able to work without getting internal errors every few minutes.
The only solution for me is to turn AO off
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