The "low texture quality" issue and dynamic lighting issues (the world is black / gone) should be solved. Please continue to report any problems you have.
Additionally, we are seeing a lot of posts and emails asking about the inability to drag EQ1 windows from one monitor to the other -- it slows the entire computer down when you do so. This is not something typically supported by Direct3D games. EQ1 apparently had this working until this week's patch. Unfortunately this issue is neither related to WinEQ, nor can I make it work again at this time through WinEQ.
However, if you wish to have this functionality, you do have feasible options. Through NVIDIA's nView control panel, you should be able to enable some sort of monitor spanning that allows it. I apologize for not knowing the details, I'm just going off of what people tell me. ATI video card owners can download Hydravision from the ATI site: http://ati.amd.com/products/Hydravision/index.html . Both tools provide this spanning functionality, to my knowledge.
Alternatively, Vista users may already be in luck, without having to install anything extra. It works for me on Vista without any special settings (and it never did on Windows XP).
Announcements from the Lavish Software team
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