A few of my friends have been talking about this:
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http://www.beefjack.com/news/skyrim-suffering-blurry-textures-when-installed-on-xbox-360/You may want to avoid installing Skyrim onto your Xbox 360 hard drive, as a significant number of users are stating that it impacts the quality of the games textures when compared with running it from disc.
Reports over on the Bethesda Forums show the supposed bug in action through a series of comparison videos and images of the game running from a HDD and from disc.
The problem was also brought to the attention of Bethesdas VP of PR and marketing, Pete Hines, who downplayed the rumours. Game runs same off disc vs. HDD, he assured on Twitter. We dont see any differences.
Still, Bethesda hasnt yet released an official word on exactly why the blurry textures are appearing, but are denying it has anything to do with installing the game to an Xbox 360 HDD. Were looking into it. Something to clear up is this has nothing to do with whether you install to the hard drive or not, reads a statement on the forum post.
As the latest Elder Scrolls title was officially released to the world, though, more complaints began flooding in from frustrated buyers. Some fixes such as installing the game onto a flash drive instead have not worked for everyone, so until Bethesda find the cause it may be best to avoid installing for now.
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