Material display goes haywire when camera is off?

Can anyone explain what causes the material to go all funny if the camera is off. It the camera in the view is On...the material is fine.

It doesn't matter which Display mode is used. 

I have seen material go haywire like this before if the model is drawn far away from 0,0,0 regardless of the camera setting. But this model is drawn at 0,0,0.

I opened the model in both V8i & Connect version of AECOsim and it's the same.

With camera Off

With Camera On