I find it disturbing how the sun's shadow is working in this game where it moves and stops every few seconds. I find it really annoying because it's so horribly unrealistic and i don't understand why they do it. I don't think it's a performance issue.

Does anyone know if it can be tweaked to move smoothly, in smaller intervals or even not at all? Everything is better than this.

I don't understand, my shadows move smoothly.

I'm playing on the 360, and you are correct - the shadow moves slightly, then stops, then moves a bit more, then stops... It's obviously not fixable for me but I've no idea if it's possible to tweak on PC.

I don't believe you. Everyone on every system has that effect.

It does move in intervals. If someone claims they are moving non-stop, it is conceivable it may be related to shadow settings. As to why they do move in intervals, calculating shadows can be pretty expensive in terms of processing overhead. To have them running in real time would put an enormous demand on the rendering engine, especially in scenes that have multiple light sources (such as a sunny day during a dragon battle where fires are burning everywhere). By calcualting them every few seconds, you significantly reduce the overhead using time slicing.

Oblivion did not have this behaviour. I see no reason why it should be neccessary now. Besides, i should be able to set the intervals and see how my system handles it. Even if just to show me that it would slow down my system too much, which i still don't believe it would. There's some other reason for this.

I really don't believe there is. As far as how to set the intervals, I'm betting that may be abstracted by the shadow quality setting. Crank it all the way up and see if it changes anything. I'm not saying it will. Like you, I don't really know why they did it that way, but having experience in game development, I can make a pretty educated guess (as in, I am 100% positive) that they don't employ real-time shadows to save on processing overhead. There would be no reason not to use them otherwise.

As far as how Oblivion did it, I don't remember ever noticing how the shadows behaved. It is conceivable they had more processing budget available for real-time shadows, or they may have used another technique, like blending.

Still no fix for this?

I have the same issue, shadows flicker all the time