My game looked like that right out of the box. Not sure what everyone's problem is. Get a new PC.
Right.
It affects the far distance the most. If you're just running the road through the forest, you won't notice it so much. And if the area you're in has nothing more to draw in the far distance but more trees, you won't notice much either, I'd guess.
Example:
Default: http://crimsonkeep.com/wallpapers/data/media/126/skyrim-grassdraw7000.jpg
ugrids set to 9 and uExterior Cell Buffer set to 72: http://crimsonkeep.com/wallpapers/data/media/126/skyrim-drawdist.jpg
The ugrids is permanently saved into a savegame file, I understand, so if you later remove it those save games wont load or other issues. Thus don't save the game before you decide whether you want to use it/what number you want to use. At least, that's how I understood it.
Edit: sorry, links fixed
Great shot, that's the same location I used to setup uGrid..as there is a lot of far off detail. Buildings, rocks, terrain, also to the right are waterfalls which look amazing with uGrid up..otherwise you get LOD texture waterfalls.
Unfortunately I have a lot of after shots, but no before comparisons. Tonight I am going to revert all my settings to default Ultra, then add one thing at a time and take shots for comparison. For now this is a shot I took before I went to bed:
http://getcapturedbymisha.com/distant.jpg
This is using the uGrids at 7, Grass/Tree draw set to 300,000. LODTreeFade is set to I think 75,000 (makes the far off trees textured rather than LOD), the SkyFade set far off which makes clouds show far off where they normally wouldn't.
Can't remember offhand what other settings I set up..and this shot doesn't show ALL of the above stuff..but still..you can see how pretty the game can be. This is 60 FPS I think this shot might be using FXAA Injector also, so everything is slightly Sharper...while still using AA/AF to make it smooth also.
And, just for fun, this is one of my favorite shots:
http://getcapturedbymisha.com/mountainawe.jpg
I wish I had a before shot of this but I wasn't tweaking at the time..so not sure if any of my settings makes this shot any better or not.