After viewing even more battlerecorder files tonight, it is pretty obvious that I am not seeing what others are seeing. I am hoping that people will be willing to list their settings so we might be able to help each other play as good as possible. Here are my settings:
TerrainQuality 2
GeometryQuality 2
LightingQuality 2
DynamicLightingQuality 0
DynamicShadowsQuality 0
EffectsQuality 2
TextureQuality 3
TextureFilteringQuality 2
800x600@60Hz
VideoSettings.setAntialiasing Off
ViewDistanceScale 1
VideoOptionScheme 3
My shortcut to start the game is "C:\Program Files\EA GAMES\Battlefield 2\
BF2.exe" +menu 1.15+widescreen 1 +modPath mods/poe2 +ignoreAsserts 1 +szx 1680 +szy 1050 which is supposed to start the game in widescreen...
I hope this helps other people.