The visuals of a game have zero to do with the API that is used. Just wanted to dispell that rumor.
The only thing a newer API brings is exposinig some features in later generations of video cards. Some software can use them, and with some it makes no sense to try to use them. It all depends on what is to be accomplished in the software as to how it should be done.
There are some known bugs in the current version of DX8.0a, not many, most can be worked around, some can't. DX8.1 fixes those bugs, adds more features, and probably will introduce some other bugs.
DX8 really did not add much above DX7. It's main changes were/are centered around the sound system, and the way input is done. Video wise, not much was changed other than the way to init DX, which is now simpler.
Most properly written game software will always do everything it can on its own, using a minimal set of calls in an API to get the graphics displayed. Software that relies heavily on any API to do the work for it is open to comptibility issues when the supplier of the API updates the code.
But, in no way, shape or form does the API affect what you see on the screen. The API only does what it is told to do.
Please do not spread misinformation about topics, it creates more problems for us that support these products. If you want a detailed discussion of how it all works, then start a thread in the Off-Topic forum, and I will be happy to capitulate.