I've just tested it now and it works, have you tried going back into the settings and disabling/re-enabling it?
Viewing post in DEMO NOW FIXED! Download Now! comments
I tried different things numerous times.
1. Turned texture setting off and nothing changed
2. Tried re-enabling (I thought maybe the on/off was backwards for some reason) and nothing changed
3. Tried turning it off again, nothing changed.
4. Kept it off and tried restarting the game, nothing changed.
Are you testing the build you uploaded to here? Perhaps you accidentally uploaded a slightly different build.