Apologies Dr Death, I was writing that at silly o'clock in the morning!
Foreman's fix of disabling sterescopic 3d in the Nvidia settings worked perfectly for me too, case closed!

I have experienced almost exactly the same issue after updating to 8.1, however I don't get any error messages.
All display is red, some parts almost look like an attempt at old school red/blue 3d.
The display doesn't look right in the menus but is completely unusable in game.
I am currently reinstalling to see if this helps...

Clean install gives no improvement, I do get an error message similiar to what Dr Death reported but only when playing fullscreen.
My Error message reads:
"Ärma 3
Rating: Not recommended
Some objects render at wrong depth. Some Objects render incorrectly."