I got a different error: it only draws things that are very near (this includes the grass and road). So I only see a small piece of road/grass/fences and opponents that are near, and the (2D?) mountains and air in the background.
When the game *just* starts I see a short flash in which everything is visible. Then it is like described above. Then, when I press escape, everything will be normal (visible) again for a short moment before the game exits.
Some info: my videocard is an Ati Radeon 7000 and I have recently installed the latest drivers for it. My screen depth is at 32 bit and I tried different settings in your setup file, and different screen resolutions and full screen/windowed mode, but it is still the same.
Here's a picture. I just noticed the border is at about the same height as in the green block screenshot above, so perhaps it is the same or a related problem.

Oh and the space around the arrow thing on the left and the text is not transparant like in other screenshots.
The area of the track that I can still see is in fact a square. If I rotate the bike I can see the 4 corners of it.
Oh and huh... my game is much darker than the others ;) Maybe a difference in video cards or settings?