I installed the game to the HDD on the 11th, before I knew anything about the texture issue. I wondered if something was wrong with some textures, including the characters hands and, for some reason, occasional dragon skins, so I researched it and found out about the bug.

I removed the install from the hard drive, and reloaded. My characters hands were looking much better, as an example, but when I fast traveled out of town and into the wilderness, the low-res texture returned and stayed low-res.

In addition to still having some low-res textures, the game is a lot less smooth when not installed. I was happily amazed when I first started playing (with it installed) that there were no stutters, framerate issues or any problems (save the textures) that I could complain about. It was extremely stable and ran great, something I can't say for Oblivion, which had constant hitches and stutters. With the game running off the disk, running around outside the game plays a lot more like Oblivion, with the stuttering.

So, I've reinstalled the game to the HDD. I'd rather have some texture issues than the stuttering.

Is there something I am missing?

Try clearing your game cache manually.

Install the game on a USB flashdrive instead, faster loading then running off the disc and the textures works fine now

the same here ,i deleted the hdd installation, and played it from disc but the textures still low........it looks so terrible that i havent played the game for long time ..and i wont play it till the update will coming up.

deleting cache doesnt have any effect for that kind of texture problem.

-using xbox 360 Slim 250 GB

Bethesda you got our money now bring up the patch to fix it ...

Yep, same here! Also, I didn't need to clear out the cache, it worked straight away.

[EDIT] As well as being faster than running off the disc, it's also quieter!

Yup, so glad that I heard about that solution until the patch comes, the game looks great now I hope everyone hear about this, I didnt even have a 8GB USB, it was like 6.9gb of free space and it worked

Clearing the Cache - fully so that you are forced to re-download patch - worked for me. However, although unsure it makes an difference, I save to a USB stick