I'm playing with Skyrim installed on a newer Kinect ready black XB360 with a 250GB HDD and the issue is very much present and very annoying. Textures look far worse than Oblivion. This needs patch ASAP.

I'm in the tutorial dungeon and the walls, floor and my character's weapon and hands look horrible.

This is a serious problem. While I find it annoying, I won't get rid of Skyrim. I can't say the same for others, however.

Bethesda, PLEASE fix this!

I've heard that the bug only occurs when the game is installed on the HDD. Playing straight off the disk is apparently fine so I will do this when I get my copy today.

You could try clearing your XBox hard drive cache, I've heard this fixes the issue for some people.

Yes it's still there, so let met get this straight you need to instal the game on your hdd and then clear your hard drive cache?

I just un-installed it and played from the disc. It still looks the same.

Bethesda, if you're seeing this, PLEASE fix this ASAP!

No, clear your cache first THEN install to HDD. If no joy then delete the installation and play off disk

Everytime when there are problems with games, they come up with.......
Hey try Clearing Your Cache. It′s hillarious.
Maybe they should change this option in PROBLEM SOLVED.
But thats not the Case. It doesent Help in any way.

The Video that pete Hines was Presenting (and he was playing on XBOX 360)
looks almost twice times better than the texture-junk we now have.

Exactly I swear I believe he was lying when he said that game was playing on xbox 360 im playing on 360 now and it looks nothing like that video heck I've seen some PS3 versions on youtube that look better than the xbox 360 build

Playing on Xbox Slim 260 gig. Direct from disc (been playing for 4 hours and not installed) No loading issues and no texture issues. Not sure how useful that is but thought it worth adding

Playing off of memory stick. No texture issues.

Although there are just a few places in the world where the textures are pretty fugly, but clearly not a bug.

Having a great time playing. Going through the stuff from the offical videos first, just to get what I know out of the way.

I played a couple of hours from disc and everything was kosher. Saved game and installed to HDD and loaded my save game. At first everything was fine until I left building I saved in and went outside. Textures on hands and weapon went nasty. Exited and uninstalled. Reinstalled on 8GB flash drive and everything was back to normal. Played another 6 hours with no problems. Now I've heard texture problem is cropping up with it from disc, from HDD and Flash drives so it might come back.