Pretty much since I first got the game (I got it at midnight on launch) I have noticed how things such as rocks, snow, and plants (bushes and tree's) all look pretty.... well, I guess ugly would be the best word to describe it. At a distance they look great, but once I'm within 5 or so feet (speaking about in game, of course) of the object it just starts looking blurry and terrible. Either the textures are just not scaling properly or the art work is just that bad. Now, I will note that this is almost totally an issue with landscape and buildings (and misc stuff like signs), and NOT with NPC's, weapons, armor or pretty much anything else. It seems to be JUST the environment.
I'm playing it straight from the disc since I have the 4gb console, but I have installed it to a USB stick multiple times to see if there's any difference and it still does the same thing (but I do notice better load times overall).
Is this simple a case of playing it from the disc or is something actually going on here that's making the game look terrible up close.
PS. I have not noticed this issue in any other games, but that doesn't really say a lot. I'll try and take some screen shots and post them.