Still wondering if there were any other possible thoughts out there as to the resolution of:
"One more thing... it's minor but when a ship starts taking barely any damage (not enough to cause any actual real damage yet... IE. at the beginning of a battle) and it is viewed from a distance, I can see some damage textures but when I zoom in to view the ship in question, it looks completely intact.
Any thoughts on this?"
It isn't a mipmap issue as I've turned off, set to lower detail, and pretty much every other combination imaginable etc., etc., and the problem still persists.