It should, but there are some requirements :
- run UnrealTournament in OpenGL
- have the HighRes Textures installed from the 2nd CD
- enable S3TC in UnrealTournament.ini :
under [OpenGLDrv.OpenGLRenderDevice]
look for : UseS3TC=True
To increase Texture Detail/Sharpness, look for :
LODBias=-0.000000
I have it set to LODBias=-0.250000 , lower values are better quality. Beginning from about -0.5 (or even lower), some FSAA and Aniso Filtering is needed to smoothen the Textures, since they will become extremely sharp even at a distance.
The Result is quite significant, looks awesome at -0.25 already.
I also recommend using the latest OpenGL Renderer, which can be downloaded here :
http://cwdohnal.home.mindspring.com/utglr/There are alot of new Options, both of which can significantly inprove Performance, as well as Image Quality (there is a special DXT1-to-DXT3 Option, which will workaround otherwise degraded Texture quality on NVidia cards)