I have tried many drivers with my card and none stop this problem even using the detonator deleter.
However i have made a discovery. I decided to dig out my old GeForce2 card to see if that would tell me if it was a card, driver, or motherboard issue. It appears that it is not drivers or motherboard but my actual card.
I installed the omega drivers (version16177) and even with AA on 2 or 4x and with the antiostropic filtering on it does not flicker at all. So i guess it is my actual card. Another user on another forum has told me that he experienced this problem when he upgraded to a newer nvidia card but when he upgraded his motherboard the problem resolved itself.
So either my card is faulty or is not compatable with my motherboard when playing FS2004. Whatever i think i will be exchanging this card for a Radeon 9800 pro as i have other issues with this card and the latest nvidia drivers that i am not happy about.
The only thing is i will be using my GF2 card until the new one arrives but the only thing that is weird is with the GF2 card my 2d cockpits are always really large like the screenshot below, i have re-installed the game but they are still like this and were not like this with the FX5900 any ideas? (i am running 1024x768 so its not the resolution and all sliders are maxed out as well)
