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Skyrim is now finally here for the majority of the fans, however not without its problems along the way. Fortunately, this one problem in particular can be remedied very easily by the gamers themselves. For those who own the Xbox 360 version of the game, it's almost instinctive to want to install the game straight to the HDD as soon as you pop the disc into the tray, but as of right now... that's not a good idea.
Quoted from the Bethesda forums about texture scaling on the Xbox..
Bethesda said:“Skyrim uses a lot of dynamic streaming systems, including textures. We’ve seen a few reports of certain textures temporarily scaling down on the Xbox 360, and not scaling back up. We have verified that this issue does not occur when playing off the disk and when the game is fully cached (not installed). Skyrim makes heavy use of the Xbox 360 caching system, and caches over the normal course of play while in menus or interiors. This cache can be wiped when other games are played or when the user manually removes it. We’re working on a solution in the next title update for those who have installed the game.”
In short: If you want your game to play nice and look pretty... do NOT install the game to HDD for the time being and simply run it off the disc, afterwards you can then install it to HDD after the 2nd patch which should hopefully clear this problem up once and for all.
Source,
GameRant