I'm having a weird issue where my character keeps cycling through the entering water animation, even when I'm walking or standing on land. It started a few days ago. It doesn't do it all the time. Rarely does it happen when I'm in the open world. This seems to get overwhelming when I'm in an underground location that has water. The more water in the area, the more the error seems to happen.

In first person, it's a jerky motion as my character tries to holster weapons while a few under water colored bars flash on the screen like I’m getting ready to go under water. If I try to move forward, it is an extremely slow jerky hoping motion. Switching to third person, shows my character having what looks like an epileptic seizure, and I still get the flashing color bars. Sometimes, if I try to walk forward, the character will go into a swimming motion in mid air. It will also cause me to fall through thin, wood plank bridges.

I first noticed it while I was in the lowest level of Shroud Hearth Borrow. Now I'm in Fallowstone Cave and the game is unplayable. I can hardly move, and I'm unable to use any weapons or spells. The seizure like motion keeps me from doing anything productive.

I’ve tried multiple things, from reseting all graphics to basic settings and removing all tweaks (including resetting ini's), to removing all mods (which are only texture related, so I didn’t think they would be affecting this); but nothing is helping. I haven't tried reinstalling, but I did verify the steam cache.

I thought I'd try some beta graphics drivers next, but I really don't think that's going to help.

If I come across something that works I’ll post it here.

My system specs are:
ASUS P5E3 DLX/WIFI-AP
CORE 2 QUAD Q9450 2.66G
PATRIOT 4GB KIT PVS34G1333LLK
EVGA GTX 580 SC
Creative X-fi Fatal1ty
Windows 7 64bit

ME TOO! I saw a thread about it. http://www.gamesas.com/topic/1340911-water-problem-when-i-am-not-in-water-but-near-iti-got-trouble/page__fromsearch__1

i don't know how to lower framerate but that seems to be what this thread says.

I have same question.

also, I keep seeing objects flying around like I smashed them with a golf club.

I fixed this issue on my system. I downloaded the 295.51 Beta drivers from nVidia's website and installed. I've been using these drivers for about three days, and it has almost totally fixed this issue. I still see the error very rarely, which I can live with. I'd prefer it not happen at all, but this game is so awesome that I can overlook minor annoyances.