Hey there
My characters shadows are all jagged and blocky no matter what setting I choose. I'm using an ATI 5770 in Win7 64-bit. Steam version, but it happens when I run it outside the Steam client too so I know it's not something to do with Steam. My drivers are up to date, my video card is fine and runs all sorts of games without problems and there's no wacky heat issues.
Here's an example of the effect:
http://cloud.steampowered.com/ugc/541776341474506761/0F09247516937E01D74BE299C032E935BAF45839/I'll just turn off shadows for now, but I'd rather turn 'em back on. Anyone know what could cause this?