More info:

I did a complete driver uninstall and re-install, then completely removed Aerofly and re-installed it.

When I do NOT install the patch, but rather run the sim with the files installed from the DVD's there are NO texture problems WHAT-SO-EVER.

At first I thought that either something on my computer or the Nvidia drivers were to blame as the problem disappeared.

Then I installed the patch again, and the problem immediately re-appeared.

It seems to be something within the patched executable itself or one of the updated config files.

The openal32.dll, etc. did NOT change between versions ( the update does not touch these files at all )...

Unfortunately the AFDP forums are mostly in German so I am unable to look for solutions on their site.