Hey all..
This question keeps coming up, so I figure this is a good place to post the answer as it is difficult to find.
The Matrox Parhelia card has a fog rendering issue with FS. To fix this issue you need to add the lone below to the display.cfg file in the FS main directory:
;———————————————————————-
; Matrox Parhelia on Win2k/XP
;———————————————————————-
[0000102B:00000527:mtxparhd.dll]Disable=1
[0000102B:00000527:mtxparhd.dll.1]MinDriverRev=5.13.1.1172
Disable=2
TableFog = 0 <<– Add this