So, the game world is divided into grids, and only the closest ones to the character are loaded. The rest, the ones in the distance, are low-res and blurry in order to consume resources (I believe).

The problem I'm having is: The terrain grids are very slow when changing from low-res to high-res as I move between grids. Very often, I've been traveling through a grid for several seconds before it finally changes to high-res, or higher detail, whatever you want to call it.

Screenshot to better describe the issue: http://img839.imageshack.us/img839/1780/2012021400001.jpg - a couple seconds later, it loads the more detailed terrain, but it's always after I've been inside the cell/grid for a few seconds.

Everything else in the game works wonderfully, and it runs smooth as butter for the most part.

Can anyone assist me in fixing this? Perhaps educate me on which settings I should change?

Any help will be greatly appreciated.

I've seen this a few times. Sometimes it happens, sometimes it doesn't. But when it does start happening, it's consistent.

I've never found the cause, but it seemed to fix itself on its own in my case. If it was something I did to fix, I did it by accident. Bumping in case someone else has a definite fix.

Are you using a framerate limiter mate?

Had a problem like this when trying out the bandicam FPS limiter. Distant buildings wouldn't load and stayed in low-res as I approached them, etc.
I have yet to experience bugs like this while using the FPS limiter bundled with MSI afterburner.

If you want to know why I'm using a FPS limiter at all:

http://www.gamesas.com/topic/1345100-i-lag-pretty-bad-indoors-any-idea-why/
http://www.gamesas.com/topic/1346573-choppy-first-person-view/

Nope, I don't believe so.

I just launch the game through Steam and play, no other programs are running. :\

Fresh download and it's still happening. :\

I've used the configuration tool to revert to default settings and ini values, but the issue persists. Does nobody know how to fix this?