See the Video here of the issues.
http://www.youtube.com/watch?v=E82FYhFCTFM

This Video was made right after updating to 1.2 the latest patch made and said to correct the LAG problems.
My save files are around 11mb, and I'm at lvl 35 now

Apologies for no sound of the game in this video, I recorded it directly off the screen of my TV to give an actual viewing of how I see the game. PS3 Slim, HDMI to TV. The sound was too ugly along with radio in the background and other noises. So sound has been replaced with music as I just commentate the video.

Opening:
showing the update and version as the latest for the game.

00:20~Low Rez Dragon:
Common issue, before and still after the patch, Dragons that venture outside of the draw distance during battles, will return stuck in Low-Resolution.

1:30~2nd Dragon fight + more Lag:
Second fight of a Dragon, now about over an hour of game play, and more Lag has shown up and only getting worse, this time the Dragon is not low-rez but very broken, darting across the sky fast, flying backwards, and getting stuck. One point the game freezes and as shown with the controller not responding for a brief moment.

6:55~ In house glitches, Solitude:
Clipping wall texture, visible since the game's release, mannequins broken, only turn invisible or not display items worn, also shown is the issue with masks work with robes that causes the player to turn invisible.

8:46~Some random shots of minor glitches, flopping corpse, one of a few see through gaps in terrain.

9:10~ Sword racks to not work or accept weapons in homes, strange shadowing.

9:31~ Moon flickers and has poor texture glitch.

This isn't even a handful of the troubles in the PS3 version of SKYRIM. As you all know, there are so many more issues in the game, this video shows what was in just a matter of a few hours of play after updating to the latest patch. just made this to share along with everyone else's