The reason it works is due to the change of textures that pearl allows. Rainbow, Chrome, and Blink also work. Glow does not, seeing as it only give the brick an effect, rather than a texture change.
Badspot COULD make the colors of blockland texture the objects and give them the same effects without any change in looks. Therefore fixing the ATI problems completely. Sadly, he hasn't taken much time to help those with the problematic video card.