http://www.youtube.com/watch?v=zXijjRIj0KQ

hd5850,i5-750,Tt750w,latest drivers

I have that and it's terribly annoying, It's most probably due to the games rubbish draw distance - tweaking the ini would fix it but I don't know which variables to mess with.

uGridsToLoad
-change the drawing up of high-quality textures
fBlockLoadDistanceLow
fTreeLoadDistance
fSplitDistanceMult
fLODFadeOutMultActors
fLODFadeOutMultObjects
fSpecularLODStartFade
fLightLODStartFade
fLODFadeOutMultItems
fShadowLODStartFade
-These options adjust the visibility range of creatures, objects, etc.
it slightly reduces flicker but doesn't eliminate it, but fps will decrease

yeah, it happens with distant texture it very annoying. even when you turn down the LOD distant settings.