I decided to make a new character today and just after I get my binds cut off, this happens:

http://i46.tinypic.com/1zmzdsg.png

The game rapidly flashes yellow when a fire source is on screen in first-person, including fire spells in your hand with some strange bubble flashing around the fire as well. Nothing I've done so far has affected this. I verified game file integrity through steam, didn't work. I uninstalled all mods, up-to-date and obsolete and deleted them, didn't work. I uninstalled the game and reinstalled then verified integrity, didn't work. Even restarted my system, didn't work.

Is this a common issue with anyone using 1.6?

PC specs:
OS: Windows 7 Home Premium 64-Bit
DX: DirectX 11
CPU: Intel quad-core ~3.2GHz
RAM: 8192MB (8GB)
Graphics card: AMD Radeon HD 6700 Series

I guess its safe to also note this hasn't been happening since before 1.6. Anyone else having similar problems and is there a way to get around it?

EDIT: Tested a couple spells across different spell types and learned it doesn't just affect fire, but some spells. Additionally, this bug doesn't happen at all while in third-person view, but its still annoying not playing first-person.