For the record, X800 users now have an acceptable solution for running Bioshock with
nearly all features intact, and almost none of the graphical artifacts present in earlier fixes. The only major downside is the increased level load times.
(Be sure to check the Project Summary thread on the ShaderShock forums to find out about the latest releases.)
It's not perfect yet, but the entire demo plays front to back with no white\missing textures to distract from the experience. I only have the demo, so I can't vouch for the rest of the retail game, but preliminary reports from the field are very promising in this regard.