It looks like the Xbox 360 version of The Elder Scrolls V: Skyrim is having graphics-related issues. According to Bethesda, if you decide to install the game on the system's hard drive, it may have trouble scaling textures.
Bethesda released the following statement on the official forums:
"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."
They also added that a fix is in development and it will be released in the next update for the game.
