it looks like it's supposed to, since it's not stretched to 256x128 pixels (!?) and colorwashed. (i did give the wings some extra contrast to make it more closely match what you see on the FMV before this fight.)
there's a lot of crap going on in the textures here, someone was really overly cautious when converting them to the psp version, and with a lack of better word, they're fucking terrible.
I wouldn't have started the whole nonsense of porting them over again if it wasnt for this, but i honestly think the texture work on the psp version is just not up there, and it needs to be redone.
I mean, just look at that hairy monster there and tell me this is not improving anything.
at any rate, the dragon is not the only thing that ended up looking a bit different in the game, there are several things i've changed to either bring them closer to their concept arts or just closer to the ps2 version textures (the color conversion on psp really damaged some things more than it should have) It's all for the greater good anyways. Trust me, i know what im doing. If not, then too bad, i'll do it anyway
the way the dragon actually looks (on the cuscene) is that his wings start glowing blue when he attacks, and are othervise dark, like the rest of his body, however, i didn't bother creating a new 3d model and programming in a thingy to change his texture for his attack animations (duh!) so i had to settle with a static color, and i made it blue since it's badass.