High Res Textures on SMP

I have set up a server, and put the server texture pack as Faithful x32 (Lastest Version)

When you come onto the server, it downloads and applies the texture pack, but in random chunks all the textures are glitched.

I have tried this with 16x texture packs, with no problems.
To fix this you simply cause a block update in an affected chunk, eg breaking/placing a block, and it fixes itself, but only for that chunk.

This is not only happening on my server, it has happened on some friends' too.