The in-game display settings are all at max, I but get this while in game...

http://i429.photobucket.com/albums/qq11/aellis-photos/ScreenShot7.jpg

then three step later...

http://i429.photobucket.com/albums/qq11/aellis-photos/ScreenShot8.jpg

If some one knows what ini settings I need to change to extend the distance these objects get rendered, I would really appreciate the help.

iirc it's fMeshLODLevel2FadeDist and fMeshLODLevel1FadeDist in skyrimprefs.ini

Just went to the STEP site and looked around. Got it working. Unchecked Distant Object Fade (or some such) from the vanilla launcher options.

no more fade in or out in the same cell.