I've searched to see if anyone has had any of the troubles I've encountered.

forums gamesas com index.php?app=core&module=search&do=search&andor_type=&search_app_filters[forums][sortKey]=date&cType=forum&cId=180&search_app_filters[forums][sortKey]=date&search_app_filters[forums][searchInKey]=&search_term=lighting&search_app=forums

I really couldn't find anyone who had this type of troubles.

This is what I encounter while playing Skyrim. Anytime I am near lights and shadows, they look like this.

youtube com watch?v=J5b2PDodzMI

These are my data files I'm playing with.

i62.tinypic com 4r4wb9.jpg

And these are my options.

i61.tinypic com/33uzos8.jpg

i61.tinypic com/280njb9.jpg

And finally these are my game's ini files.

[General]fBrightLightColorB=1.0000fBrightLightColorG=1.0000fBrightLightColorR=1.0000iStoryManagerLoggingEvent=-1bEnableStoryManagerLogging=0[Imagespace]bDoDepthOfField=1iRadialBlurLevel=0[Display]iBlurDeferredShadowMask=0fInteriorShadowDistance=3000.0000fShadowDistance=2000iShadowMapResolutionSecondary=1024iShadowMapResolutionPrimary=2048iShadowSplitCount=2iMaxAnisotropy=1fLeafAnimDampenDistEnd=4600.0000fLeafAnimDampenDistStart=3600.0000fTreesMidLODSwitchDist=3600fGamma=1.0000fDecalLOD2=1500.0000fDecalLOD1=1000.0000fSpecularLODStartFade=200fShadowLODStartFade=200.0000fLightLODStartFade=200iTexMipMapMinimum=0iTexMipMapSkip=1iWaterMultiSamples=0iMultiSample=1iShadowMode=3bTreesReceiveShadows=0bDrawLandShadows=0bFull Screen=0iSize H=810iSize W=1440fMeshLODFadePercentDefault=1.2000fMeshLODFadeBoundDefault=256.0000fMeshLODLevel2FadeTreeDistance=2048.0000fMeshLODLevel1FadeTreeDistance=2844.0000fMeshLODLevel2FadeDist=3072fMeshLODLevel1FadeDist=4096iScreenShotIndex=2bShadowMaskZPrepass=0bMainZPrepass=0iMaxSkinDecalsPerFrame=0iMaxDecalsPerFrame=0bFloatPointRenderTarget=0sD3DDevice="ATI Radeon HD 3600 Series"bFXAAEnabled=0iShadowMapResolution=512fShadowBiasScale=0.5iShadowMaskQuarter=3iAdapter=0iPresentInterval=0iShadowFilter=3bShadowsOnGrass=0bTransparencyMultisampling=0bDeferredShadows=1bDrawShadows=1[Grass]b30GrassVS=1fGrassStartFadeDistance=0fGrassMaxStartFadeDistance=7000.0000fGrassMinStartFadeDistance=0.0000[MAIN]bGamepadEnable=1bCrosshairEnabled=1fHUDOpacity=1.0000bSaveOnPause=1bSaveOnTravel=1bSaveOnWait=1bSaveOnRest=1fSkyCellRefFadeDistance=150000.0000[GamePlay]bShowFloatingQuestMarkers=1bShowQuestMarkers=1iDifficulty=2[Interface]bDialogueSubtitles=0bGeneralSubtitles=0fMouseCursorSpeed=1.0000bShowCompass=1[Controls]fGamepadHeadingSensitivity=1.0000fMouseHeadingSensitivity=0.0125bAlwaysRunByDefault=1bInvertYValues=0bGamePadRumble=1bMouseAcceleration=1bUseKinect=0[Particles]iMaxDesired=750[SaveGame]fAutosaveEveryXMins=15.0000[AudioMenu]fAudioMasterVolume=1.0000fVal7=1.0000uID7=0fVal6=1.0000uID6=0fVal5=1.0000uID5=0fVal4=1.0000uID4=0fVal3=1.0000uID3=94881fVal2=0.4000uID2=466532fVal1=1.0000uID1=554685fVal0=0.8000uID0=1007612[Clouds]fCloudLevel2Distance=262144.0000fCloudLevel1Distance=32768.0000fCloudLevel0Distance=16384.0000fCloudNearFadeDistance=9000.0000[TerrainManager]fTreeLoadDistance=12500fBlockMaximumDistance=75000fBlockLevel1Distance=25000fBlockLevel0Distance=15000fSplitDistanceMult=0.4bShowLODInEditor=0[NavMesh]fObstacleAlpha=0.5000fCoverSideHighAlpha=0.8000fCoverSideLowAlpha=0.6500fEdgeFullAlpha=1.0000fEdgeHighAlpha=0.7500fEdgeLowAlpha=0.5000fTriangleFullAlpha=0.7000fTriangleHighAlpha=0.3500fTriangleLowAlpha=0.2000fLedgeBoxHalfHeight=25.0000fEdgeDistFromVert=10.0000fEdgeThickness=10.0000fPointSize=2.5000[Trees]bRenderSkinnedTrees=1uiMaxSkinnedTreesToRender=20[Decals]uMaxDecals=0bDecals=0bSkinnedDecals=0uMaxSkinDecals=0uMaxSkinDecalsPerActor=0[LOD]fLODFadeOutMultObjects=2.5fLODFadeOutMultItems=1fLODFadeOutMultActors=2.5fLODFadeOutMultSkyCell=1.0000[Launcher]bEnableFileSelection=1bShowAllResolutions=0uLastAspectRatio=3[BlurShaderHDR]bDoHighDynamicRange=0[BlurShader]bUseBlurShader=0[Water]iWaterReflectHeight=512iWaterReflectWidth=512bUseWaterDisplacements=1bUseWaterRefractions=1bUseWaterReflections=1bUseWaterDepth=1

[General]sLanguage=ENGLISHuExterior Cell Buffer=36[Display]fShadowLODMaxStartFade=1000.0fSpecularLODMaxStartFade=2000.0fLightLODMaxStartFade=3500.0iShadowMapResolutionPrimary=2048bAllowScreenshot=1[Audio]fMusicDuckingSeconds=6.0fMusicUnDuckingSeconds=8.0fMenuModeFadeOutTime=3.0fMenuModeFadeInTime=1.0[Grass]bAllowCreateGrass=1bAllowLoadGrass=0[GeneralWarnings]SGeneralMasterMismatchWarning=One or more plugins could not find the correct versions of the master files they depend on. Errors may occur during load or game play. Check the "Warnings.txt" file for more information.[Archive]sResourceArchiveList=Skyrim - Misc.bsa, Skyrim - Shaders.bsa, Skyrim - Textures.bsa, Skyrim - Interface.bsa, Skyrim - Animations.bsa, Skyrim - Meshes.bsa, Skyrim - Sounds.bsasResourceArchiveList2=Skyrim - Voices.bsa, Skyrim - Voicesixtra.bsa[Combat]fMagnetismStrafeHeadingMult=0.0fMagnetismLookingMult=0.0[Papyrus]fPostLoadUpdateTimeMS=500.0bEnableLogging=0bEnableTrace=0bLoadDebugInformation=0[Water]bReflectLODObjects=0bReflectLODLand=0bReflectSky=1bReflectLODTrees=0

And here's my dxdiag.

Any help would be appreciated!

PS: I had to modify my links because my forum permission level doesn't allow posting links.

Your video solution is pretty poor. Have you turned every down to the minimum level?

Have you done any changes to those files ????

Try setting iShadowMapResolutionPrimary to 1024.

Have you tried reinstalling/updatig Card drivers?