Haha! I fixed the problem. It was so simple, I wonder why I didn't think of it sooner. I went into nvidia control panel and changed application specific settings specific to FFXI. By default it has Aniosotropic filtering off, Antialiasing off, Antianaliasing-transparency off, Texture filtering-Aniosotropic filter optimization off and Vertical sync off.
I made most of those settings application controlled or on. I'm not sure which exact setting fixed it as those big words mean nothing to me :p
