2x Crossfire AMD 7970HD's - newest CCC available . 12.4 beta 2012.0315.1621.27344
Win 7 Ultimate 64 bit - all updates up to date
When I crank the water effect up to ultra, it stutters, so I set them setting down to high, clears that stutter, now the opposite happens to the shadows, shadows on High, they go like a flashing light show, crank them up to ultra, they work fine.
I may be mistaken, but you're complaining about video issues on an in development game client while using a beta video driver. Try using the latest release drivers and see if the issue persists. Newest drivers aren't always better, especially if they are still flagged as beta.