First I will explain my experience:

I bought the game at the midnight release and played it all night off the disc with no texture issues. The next morning I decided to try installing on the HDD to test if I would get the "texture bug". After probably about 15 minutes I noticed some textures were being drawn in at very low res (hands, weapons, shields, some environmental textures).

So, to try and fix it I quit the game, went through the xbox system menu, uninstalled the game from HDD, cleared my xbox cache, and reentered the game. The textures were still bugged and wasn't sure what to do so I just kept on playing. At one point I manually saved to a new save file and when I came back from the save menu to the game the textures started popping into the correct resolution. All was fixed and back to normal!

Today (I am about 15 hours into the game) I ran into some issues with low res textures and once again I made a new save file, came back, and the textures began popping up at correct res.

I just wanted to share my experience and was hoping others with messed up textures could try the same thing I did to see if it helps!

Please report your experiences here.

cheers

Question : Did you get prompted to download an update when launching Skyrim when you deleted you cache or no?

Yes

Catching is done when in menu and interiors that's why your textures started popin after u opened and closed menu.