Thanks Ulani! I kept a copy too. I was planning to re-post when forum reverts, but if you beat me to it..that's cool. Thanks for your help as well, I would have never figured this out without your info.
For your issue....You should uncheck all UTX products. They are DX10 and do not need conversion. You should also uncheck any scenery add-ons that you find the weird non blending texture lines. With freeware like OZx you can try unchecking different scenery folders to find which are causing the issue. It does take a little time and patience to isolate the correct scenery. In your case, I would just uncheck all scenery you know are in the area you see the issue. I am sure you will isolate the problem and then still get the benefits of ADX in the rest of your sim.