Fixed the problem - just needed to add z sorting.
sync on
sync rate 30
autocam off
backdrop on
color backdrop 0
set ambient light 50
position camera 0, 3, -8
SET PHYSICS FRAME RATE 60
MAKE basic EMITTER 1, 600
SET EMITTER RATE 1,100
SET EMITTER EXPLODE 1, 0.1
SET EMITTER PARTICLE VELOCITY 1,1,10
SET EMITTER PARTICLE LIFE 1,5,0
SET EMITTER PARTICLE MASS 1, 50, 50
SET EMITTER PARTICLE SIZE 1, 0.25, 80
set particle z sorting 1,1
MAKE GRAVITY EFFECTOR 10
BIND EFFECTOR TO object 10, 1
SET GRAVITY EFFECTOR 10, 0, -0.2, 0
load image "smoke.png", 1
texture object 1, 1
set object transparency 1, 1
make color effector 200
a=color effector add key( 200, 1, 255, 255, 255, 255)
a=color effector add key( 200, 5, 255, 0, 0, 0)
bind effector to object 200,1
angle# = 0
speed# = 2
targetx# = 0
targety# = 3
targetz# = 0
DistanceFromObject# = 4
repeat
set cursor 0, 0
angle# = angle# + Speed#
if angle# > 360 then dec angle#,360
xPos# = targetX# + cos(angle#) * DistanceFromObject#
yPos# = targetY#
zPos# = targetZ# + sin(angle#) * DistanceFromObject#
position object 1, xPos#, yPos#, zPos#
point object 1, targetX#, targetY#, targetZ#
print "3D Cloth & Particles - Emitter Demo"
print screen fps()
UPDATE PHYSICS
sync
until spacekey()
BatVink
