I had the same problem. I downloaded 3D-Analyze and used KYRO zbuffer/stencil fix and now it works fine.
I had to select
"force zbuffer" under Performance
"KYRO zbuffer/stencil fix" under hardware limits
"force 24 bit zbuffer" under Z-Buffer (with or without stencil doesn't matter)
and it seems to work!
Fikem bem...