I just picked up skyrim from gamestop, popped it in, and am playing.
First scene the textures were fine..when you go into the keep however, the textures wack out, my hands look like smooth plastic barbie hands, same with weapons and the ground/objects.

Installing to a flash drive to see if it fixes it.

Bear in mind this is OFF THE DISC - I DID NOT INSTALL

i think i know what you mean.i have 360 version installed on hdd.to be honest though the game still looks stunning (just my opinion).and bethesda are on the case about making a patch to fix the problem it hasn't spoiled my enjoyment of the game at all

Definitely not spoiled, the gam a is great.

Ditto - I have mine installed to hard disk and get he same thing.

It's not all the time, and if you stand still it will sometimes pop in. Most happens with ground textures and hand textures. Bit of a shame, but I expect they will patch it.

Has bethesda even admitted this is an issue?
And remember this is OFF THE DISC, I didnt install.

They have admitted that it happens after you install it to the HDD. But I'm with you, I saw all kinds of texture issues when playing off of the disc.

Is anyone else just seeing non-stop low-res textures on walls in particular? I haven't encountered the texture problem on the character's hands at all but only textures in the environment. It's weird because if I save while looking at a low-res texture on a wall, the picture of the save game seems to have the right textures! (although that could have something to do with the scale of the save pic)

I've tried playing off the disc, the HDD and a USB stick and no matter what I have non-stop low res textures, mostly on my character's hands and my weapons but also for NPCs, the ground and random objects like tables, doors, chairs, etc.

They confirmed it happens regardless of installing to the hdd or not.

EDIT: just saw new gstaff post confirming what you say

Bethesda has said this issue is being worked on and that it happens whether or not you're playin from the disk or the HDD install. I personally have seen some rocks, fences, weapons, and the side of one mountain look quite blurry. Nothing game breaking, but rather annoying when the rest of the world looks good.

see its quite different for me. mostly everything looks horrible apart from mountains in the distance or some things close up. but most the scenery and objects look horrible especially clothes and Armour and weapons and im not just complaining because im not a gfx [censored] at all. this looks worse than oblivion tho. i just don't get it!