The problem sounds very similar to a shader problem I had recently. In my case the solution was two-fold: (1) use "clamping" rather than "wrapping" in the texture sampler; and (2) save the image in DDS format and manually alter the border colours of the various mipmaps. A bit messy but it worked.
I also tried turning off mipmapping - but, as Dark Coder suggests, while that solution removed the artefacts it may introduce other problems.
Is the problem image static or dynamic?
Edit Just had a closer look at your screenshot. Is your "intermediate" image essentially in two halves? That is, an upper light brownish section with a darker brownish one underneath representing the boundary between wall and ground? If so, then "all" you have to do is turn off wrapping for that texture.
How you achieve this depends on how the textures are applied to your object - but you might like to look at the
set object texture command if a simple object is involved.
If you are using a shader then "addressU = clamp", etc, is what you need in the sampler. If it's a limb textured and rendered using DBP commands then I'm not sure what you can do - except to use a shader (

).
Perhaps DC has further suggestions?