See Far LOA Camera Mod: Without this mod, you'll be staring down at your character from an angle due to the camera restrictions. Nowadays, the processing power required by Dungeon Siege is trivial, and releasing the camera will likely not put any strain on your computer compared to the computing power widely available in 2002 when it was first released.
If you've extended the maximum view distance too much, the game might fail to load certain areas (especially those cluttered with a lot of objects or terrain features) quickly enough, and corrupt its map in memory. Don't save your game--Just restart Dungeon Siege, and reduce the maximum view distance.
When taking your shots, keep an eye out for things you were not meant to see, however, such as the underside of the tower roof in the screenshot below. (Also note the hideous 'toadstool cap' hat on the man -- not all Dungeon Siege fantasy art is stylish!).
Use the Cursor: The cursor won't show up in a screenshot, but hovering the cover over a particular character will causing them to be brighter, regardless of what local lightning should dictate. For example, the anime girl in the below screenshot appears brighter because I had the cursor on her.
Turn Off the Green Ring: When a character is selected, there is a green ring underneath them, and it will normally show up in screenshots. Turn it off by going to Options, and looking under the Video tab for Character Selection Ring.
Turn off the GUI: When you take a screenshot, you will also get the Graphical User Interface, like the compass in the top right. To turn it off, use the command "-gui". This works just like a cheat. Once you turn it off, you will also not be able to see the command line box when you press ENTER. It's still there, though, so you can re-enable the GUI by typing blindly: ENTER to open the command line box, then type in "+gui" and ENTER to re-enable the GUI.
Command Line Options: In directory that Dungeon Siege was installed, there will be a Readme.rtf file. Scroll down to Section F: Gameplay and Multiplayer Issues and browse the command line options. In particular, you may want to use the "height=xxxx" and "width=xxxx" options to force the game to use a certain resolution not otherwise supported, especially if you have a widescreen monitor. Also try "aa_screenshots=true", to get better screenshots. Anti-Aliasing is a process used to make smooth lines and edges.