It seems TextureLoader is returning 8-bit textures when it shouldn't be. At first I thought the wrong color depth was set for the whole application, then after a few hours of fiddling around I found out the application (canvas3d) is in 24-bit mode (and desktop is in 32-bit mode).
But all of my textures look like they are 8-bit, like there are not enough colors. The original textures are fine, and I've set min and mag filters to nicest, but I get color banding like you get when a 16 or 32 bit texture is loaded as 8-bit.
I must have spent at least 4 hours looking through java docs and fiddling around, does anyone have any ideas about what might be going on?
here is a screenshot: http://img.photobucket.com/albums/v158/tandaur/bad.jpg
Look at the mountain image on the far walls.