Thought I'd pass this on, in case those of you running model 2 for Daytona haven't come across this yet!
In the emulator.ini file, change geometrizer=1 to a 0, I found this made a big difference to the graphics. The wheels don't look so hollow, and on the attract screen, there would be sections of land/grass drawn in the sky, this also fixes this.
Only problem is Sega Rally is affected, with the graphics not quite as good (over the jumps I see very quick flashes of what appears to be water)
But speaking to SGT, he advise this should be quite easily fixed running 2 emulator.ini files.
Hope this helps