I have two graphical glitches which I presume are related.

Firstly most objects have a kind of glow around them that cuts into their own shadow. http://cloud.steampowered.com/ugc/505764671899269104/78E5AEB5CDB11D910AEF8D814DC1EE17FFD2966F/ shows a bucket doing this.

Secondly when I in dungeons the equipped items get a glow around them when against water. http://cloud.steampowered.com/ugc/505764671899278288/93B4C86B179DABD4E5A57DE07FFC11602B4A3442/ shows this.

Does anyone know a fix for this?

That's a cheap fake reflection effect I think and I've seen it in other games as well. I think your first shot is a bug.

It might be the texture packs. I had a similar problem with glowing logs in a fire. I unchecked all my mods and and slowly checked them to see which one it was. It just happened to be the Official 'High Res Texture Pack 02.esp'

I wonder if it could be the Anti-aliasing Transparency. I kept noticing that weird highlighted aura round my character's head and it bugged me, so I turned that feature off through my NVIDIA Settings template for Skyrim. What video card do you have?

Do you have Anti-aliasing enabled somewhere other than the Skyrim Launcher? Certain forms of anti-aliasing (MSAA/multisample) are not to be used with Skyrim.

I noticed the glowing logs too. I'm only using the official HD mod. Have you found a way to fix it without removing the mod?

I think someone put out a mod to fix the issues with the official HD pack - one of the fixes is for the glowing logs.

you can try without HD, do you still have the same problem?

if your pc up for the HD? you need a freaking horsepower to run HD will similar performance as without HD.

I beg to differ. I use 8x MSAA and 2x Transparency Supersampling, enabled with Nvidia Inspector, and have zero problems with it. I use it on top of the game's settings, and it works out awesome. The game's AA still leaves you with a lot of jaggies.

However, I know CSAA is not supported, and simply won't even load up with it enabled. SSAA doesn't work either.

I was referring to multisample transparency AA (or TRAA), which should not be used in Skyrim. This option is only available through the Nvidia control panel or similar applications. The MSAA available through the Skyrim launcher is not multisample transparency AA. If you enable this in Skyrim, some objects and NPCs will become see-through. Other strange and undesirable effects may also occur.

Amazing that SKyrim actually supports multisample AA yet is buggy with it. As said yes, supersample is best and avoids the bug, not that it might be the Op's problem.

SSAA is the only thing that gets my GPU a 99% workout....stupid CPU tied game.

Ah, I see what you're saying. You're correct, multisample transparency AA is not supported. Regular MSAA and Supersampling transparency AA is supported, and looks pretty good imo but is definitely not a must. It does eat up a lot of VRAM and GPU cycles too.

Supersample is supposed to because it does such a good job. If you've got the GPU and VRAM to spare it's definitely worth the hit. Multisample transparency AA is actually supported by Skyrim internally, it just has bugs.

I find SSAA runs well considering but it does get laggy in area like swamps.