The problem appears fixed (see below). However, I need to know if a BFBVFS is impending. Oh, and if someone can tell me for certain what caused the problem so I'll know if it happens again, I'd be grateful. (I hope it's okay to include the image.)
I run Windows XP Pro with 4GB RAM, all my drivers are up to date. I'm playing with 2 Nvidia GeForce 8800GT cards. I have everything up through M&G and all the patches. DirectX is UTD.
This occurred in a very old hood that hadn't been played for three years. I recently compressed my DL folder. The problem included CC clothing and Maxis clothing (though not all of either type). It repeated in other hoods (the clothing catalog, not the paper doll people). I swapped out all folders and removed the Downloads entirely, but the clothing catalog still showed the red outfits. Finally, I checked in CAS. The outfits were red, but when I clicked on them, they were fine. I deleted the old thumbnails and let them regenerate. I also double-checked my graphics cards and discovered the SLI had been turned off. I put that back on. Everything has been fine since.