I'm sorry haven't been paying attention to this issue.
Is this problem on officially released copies, or on pirated versions?
Both, it's a problem with textures not loading properly when the game is installed but I'm also getting conflicting reports that it still occurs if you play it on disk. Hopefully Beth on Friday explains in more detail as to why this is occuring.
I got the game yesterday for Xbox, installed it to my HDD, downloaded the patch and I also have the low res texture problem. It does not ruin the game for me and the lighting effects and the scenery far away are still looking good, so I'll play with low res textures until it gets fixed. The menu does not seem to be causing the problems because if Ii start up the game I immediately have the low res textures, not after I open the menu.
Did you clear your system cache, that might get rid of it.