Originally Posted by JDR13 
The shadows looked great to me (on my system). Sounds like an issue with your system/video drivers. Let me guess… ATI?
It's a known issue with both ATI and Nvidia. Mostly noticeable at medium range, on light backgrounds (such as skin textures). I eventually got used to it, but am still waiting on the first patch for the second playthrough to see if anything is resolved.