I cant seem to find if anyone has already figured this out so I will post it.

For those of you who have been having the shadow issue since update 1.5 where all shadows are missing unless you are standing in the area where they would be projecting than the fill your screen and move around with you until you leave that area this SkyrimPrefs.ini modification will probably fix the issue.

1 : Open SkyrimPrefs.ini
2 : Find bDeferredShadows=1
3 : Change to bDeferredShadows=0
4 : Save and start Skyrim.

I called it the 1.5 Update Shadow because thats when it started. It has been a persistant issue in all updates since then and has not been addressed.