I tried playing around with the Update.bsa and put the original shaders in from Shaders.bsa. Sadly that didn't work. I have a feeling it has something to do with the TESV.exe update
By the way crashdown55. That is the exact card I upgraded from. for the fact its considered a low end its very powerful. sadly I didnt backup my files before the update so I cant revert back to 1.4.

same problem here , weird shadow patterns flickering and weird grid, ATI Radeon HD 2600 XT , I resolved the problem by regressing to patch 1.4. But I hope a solution will be found for 1.5 soon.
Card name: ATI Radeon HD 3870 X2
Manufacturer: Advanced Micro Devices, Inc.
Chip type: ATI display adapter (0x950F)
DAC type: Internal DAC(400MHz)
Device Key: Enum\PCI\VEN_1002&DEV_950F&SUBSYS_25421002&REV_00
Display Memory: 2419 MB
Dedicated Memory: 1012 MB
Shared Memory: 1407 MB
Current Mode: 1360 x 768 (32 bit) (60Hz)