The CFX logo in the display box is weird...normally everything should be gray when no model is found. Maybe your graphics card driver?
Anyway, this looks as if the model o3d is distorted in some way. A reason might be that it contains faces with no texture assigned to them. You can try with a copy of than model: Re-texture all faces with just one texture and try again. If it works, there are some texture problems in it. What modelling software do you use? Maybe the o3d converter has problems converting an x-file that hasn't been exported from Blender.