is anyone else still having a problem with the bug where your characters arm raise above your head when you squat or when your walking with your gun out your arms go to the top of the screen and they slowly come back down

Yes, this is a known bug and will be fixed next patch.

i thought they were suppose to fix it with the patch before HH

Somewhere in a OWB thread, Jason mentioned they nailed the bug, so the fix will come in a upcoming patch

I guess they thought they did. THis particular bug was hard to get a fix for. This one is promised to be fixed for sure now.