so after the patch today my game was looking like this: http://www.youtube.com/watch?v=iq39bo2xL0g
yesterday after ATI preview drivers 2 i had almost no problems. today after patch it looked like the vid, but with no textures at all.. Dont know how many of you that has this problem, and im not really sure what i did to help it so im just going to list the things i fiddled around with:

first i uninstalled the ATI drivers, and did a fresh install of ATI preview driver 2 again. then i put in the following steam startup setting: +vt_pageImageSizeUnique 8192 +vt_maxPPF 16 +vt_maxAniso 4. Last thing i did was changing the virtual memory on the windows paging file management. i changed it to the recommended setting on 4990 MB for me. And basically this did the trick for me. im still not sure how stable this fix is.
my specs:

AMD Phenom II X4 black edition, 3,2 GHZ
4 GB ram
ATI Radeon 5770 HD
Windows 7 32 bit

Edit: this only seems to be working with all settings on low:(

See if my post here helps:
http://www.gamesas.com/index.php?/topic/1239172-artifacts-unloaded-or-wrong-textures-start-a-new-game/