I had some horrible shadow flickers with the new patch, enough to give me a splitting headache. I followed another member's advice and updated my NVidia drivers. Problem gone!
I'd suggest anyone else having this problem should do the same.
I don't know what the thread-starter's ultimate goal was in starting this topic. I guess we can all rest easier knowing that "ClimbingIvies" solved his/her problem. For those that haven't been able to do the same through psychic inference, it has been reported that updating to the latest (296.10) Nvidia drivers may fix the problem. When making the 'shadows on grass' changes, BGS likely used the latest WHQL drivers as a baseline and didn't test for issues on older versions of the driver. If this does not solve the problem, it has also been reported that changing fShadowBiasScale to something like 4 (default for me is 0.15) may reduce the effect.
I would suggest updating the video drivers first before making the INI change.