If this is anything like wat happened to me then this is how u fix it.
open up nfsu2, go into option,video,customize, then right down the bottom there should be an option called texture filtering, turn this up to the max.
Now exit nfsu2 and enter it again.
If this doesnt help then i dont kno wat your problem is.
U need to be more specific wat exactly is looking horrible? The textures the jaggies??
heres some pics of wat happens with texture filter.
Texture filter off:
Texture filter on: