I'm pretty sure we all experience the "light flicker/pop-up" issue. This is how I describe it:
- When you're far away, the lights look nice and strong
- When you move closer to light sources they "flicker/pop-up" as less strong lights.

This can be really annoying when walking through cities. All lights just flicker/pop-up a few meters in front of you as you run around.
It's obviously most noticable at night.
A video example: http://www.youtube.com/watch?feature=player_detailpage&v=eytYg7loTP4#t=1182s

The fix is this:
In Skyrim.ini under section [General], put:
fFlickeringLightDistance=4096.0000

The default value of this is 1024.0000.
The result is that this "light flicker/pop-up" range is longer. Only lights far away "flicker/pop-up" now.

BUT... there is a downside. Since the "flicker/pop-up" does it so lights emit less strong light closer to you, but stronger light far away... more lights will now appear less strong than otherwise, but they won't "flicker/pop-up" in return.

Here's an example of how it looks with the default value of fFlickeringLightDistance=1024.0000: http://img829.imageshack.us/img829/4387/tesv20120115192224604.jpg
Lights will "flicker/pop-up" though in return when you get close, and then look the same as below.

And here's an example of how it looks with the new value of fFlickeringLightDistance=4096.0000: http://img708.imageshack.us/img708/4462/tesv20120115192524872.jpg
Lights won't "flicker/pop-up" close to you, but in return look less strong.

Conclusion:
Setting fFlickeringLightDistance=4096.0000 makes the "light flicker/pop-up" range much farther, so you won't notice any annoying "light flicker/pop-up" close to you anymore. Since this range is much farther now, the lights are also less strong. But because this only increases the range, you would also see these less strong lights if you had fFlickeringLightDistance=1024.0000 but were closer to the lights.

Having the default value fFlickeringLightDistance=1024.0000 makes the "light flicker/pop-up" range very close to you, so you'll constantly see how lights "flicker/pop-up" when you walk around. Since this range is closer, the lights appear stronger far away, but when they do "flicker/pop-up", the lights appear as less strong as if you've had fFlickeringLightDistance=4096.0000. Having fFlickeringLightDistance=1024.0000 is thus only prolonging the fact that the lights will look less strong as fFlickeringLightDistance=4096.0000, you just have to move a little closer to get the same less strong look.

The performance hit of changing this is 0 FPS.
I therefore recommend people putting fFlickeringLightDistance=4096.0000 in Skyrim.ini under section [General].

I haven't noticed this, so i wont look for it...But i snapped a shot for you for a http://i232.photobucket.com/albums/ee72/camaro_69_327/Skyrim%202012/TESV_2012_01_15_14_54_45_439.png. My lights flicker if there is fire involved but it should. Compare the texturing up close and far away between these...yours / mine. That setting for "LOD texture filtering" really shows here...

Great find. I was seeing the same issue and it was bugging the hell outta me but this fix works brilliantly. Big thumbs up!

Np
I was looking around in the list of .ini files and saw this setting, so I thought it could be realted to this annoying "issue" and it was.
I've never seen anyone talking about this .ini setting before so I thought I could enlighten people as it enlightened me

Flickering, pop-ups... it's all so annoying. I want a consistent experience.