Did you forget depth testing...? And disable blending, e.t.c. =S Cull face winding?
Yeah, that's what that looks like.
Also I don't think you can have texture binds in your display list. Try to move the texture.bind() at least to before you call glCallList() in your game loop.
You definitely can
use texture binds inside a display list.
Actually, you should not use display lists because their implementation is not consistent on some recent hardware, it is a waste of time. Rather use static VBOs even though they can be a bit slower with very small datasets.
Do you have any specifics? What hardware, any particular uses that trigger it, etc? I'd really appreciate any info you might share. I'm using display lists them and haven't had any problems (or had any problems reported).