Not really sure if this is a glitch, but I've found that waterfalls look great close to mid range, but look like crap from a distance. If im standing around battle born farm near whiterun, and look towards the waterfalls on the way to riverwood, They look completely solid, like water colored arches. Does anyone else notice this as well?

Yup same for everyone. Detailed range on the 360 is about 15 or 20 feet I think. Up close you can even see the ground done up, and about 10 or so feet after, it's all a flat pattern very untextured.

Waterfalls viewd from far away are horrible, frozen/motionless. I don't think this will ever be fixed.

i noticed it as well. i hope they fix these issues soon.