Following complaints about the texture glitches in the Xbox 360 version of Skyrim, Bethesda has now announced a patch that will solve the issues players have been experiencing.
Basically, by installing Skyrim to the Xbox 360, it will trigger an error which will restrict the game from loading high detail textures resulting in blurry visuals. This is all because of how the Xbox 360's hard drive uses caches.
The community manager at Bethesda stated the following on the developer's official forums: "We have verified that this issue does not occur when playing off the disk and when the game is fully cached (not installed)."
For now there's not much players can do other than erase the install file in the Xbox 360 memory menus. Hopefully this patch will come out soon.