When wandering around outside in the wasteland I see these wierd white flashes, almost like a camera flash. It seems to be happening on the terrain only, it happens quite a bit, not to the point where its unplayable or anything. But it happens enough to the point where its definitely noticable.

AMD Phenom 2 955 BE
EVGA GTX 480 <- latest drivers
4GB DDR3

I'm getting that too. At first I thought it was a texture thing, but I believe it has to do with the HDR. I've tried to get a screen shot of it before posting, but it's kind of hard to capture.

I have a GTX 470, I installed the most recent 260.89 drivers while waiting for the FedEX truck to get here, I wonder if going back to 258.96 will fix it.

It's an Nvidia driver issue. For now, you can't have both HDR and AA turned on (with the latest drivers) or you get this problem. People have reported that turning off either AA or HDR fixes it. Nvidia are working on a driver fix.

I have a GTX460, so there aren't a lot of drivers for me to go back to (first support was in 258.96), so I'm planning to test tonight with AA off.

It's not just an Nvidia issue. I have a ATI 4770 and am having this same problem persist after updating drivers. What *seems* to have fixed
it for me is turning down my overclock settings, which svcks because I'm not having problems in any other games, like Oblivion, which
is the same engine.