Initially after some experimentation I had assumed that this was related to anti-aliasing. Something that other forum posts seemed to confirm.
However - this is a screenshot taken today with all AA settings off. The glitch is outlined in red. It moves with the camera and makes the game almost impossible to play!
I won't lie - starting to get pretty hacked off with this game already!
http://i62.tinypic.com/2nkufcy.jpg

