I dont remember if shadows were always broken but my shadows are completely broken. There always flickering if I move, they don't appear until I am 5ft away from the object and with shadows and on top of that the shadows on rocks or big surfaces aren't even shadows there really ugly black lines. I have deleted my game data and re-installed but its still there. I really hope this ends up being fixed in 1.06 but I heard that the shadows are messed on the Xbox-360 version as well. Does anyone else have this problem? If it helps my 1st save is 11mb and my second save is 5mb, both have the shadow issue. Also I am on the 160gb PS3 slim.

That's just the way the shadows are rendered I'm afraid, some areas also have texture flicker where the low and medium res textures swap back and forth.

As to a fix in 1.06, we can only guess there will even be a 1.06 at this point as we aren't getting told anything meaningful.