Found this on the Alan Wake Steam forums. Basically stating that the sliders for LOD and Draw distance are bugged. Here is the post and 2 people also saying they noticed it as well...just a heads up.
Hey guys from Remedy. The Slider for the Draw Distance is currently bugged.
If its turned to the right the Draw Distance is closer but it should be far away. And left side is the other way arround of course.
Please fix that. I also noticed some weired Tree flickering on the Boat Scene in the beginning. Please fix that too.
Otherwise Awesome game. Got it on Xbox 360 already
But i just had to buy it on PC too
Yepp just noticed that too. LOD one is bugged too.
Sorry guys. I just copied and pasted the above from the Steam forums, upon testing this myself the OP was wrong over at Steam forums. The sliders are working as intended as noted below in the reply to the OP at the officail Steam Forums.
Agains, sorry for posting B.S.
*************THIS IS INCORRECT**************
I just tested this and the OP is WRONG. In the beginning of the game, when you finish the first part at night and you are now in the day time, when you get to the Cabin on the lake, walk back up to where the car is parked.
In this scene, you are high above the water, over-looking the lake house and the mountains and other buildings in the far-backround.
Reducing the Draw Distance all the way to the Left causes the building and tree's that are on the mountain in the backround to disappear and reappear (draw in) as you turn the camera. Changing the slider to the right elminates this all together and there is no draw distance. With it to the left there was even a small mountain appearing and disappearing as you panned the camera. Slider to right eliminated all the draw in, not even one tree was popping up, they were all solid.
**The slider is working as intended**
For the LOD, same thing. Sitting on top of the same area, I turned around and walked towards the gate and you can see the textures on a stack of logs changing as it loads in the higher resolution textures. Turning the slider all the way to right, it is completely perfect, no changing of textures. This slider is also working as intended. Having the slider to the left causes it to display lower end textures and as you approach items it loads in higher rez. textures. Having the slider to the right elimates this and has the higher rez texture loaded in at a farther distance...again working as intended.
Please ensure you test stuff OP before posting false information. The sliders are working as intended and you can test this yourself easily. I am glad I did, because I turned them down and went to the top of the cabin area and noticed nasty draw in and LOD issues.