The stupid part is that AC1 was much better regarding this issue, and the .ini files were highly adjustable, there was even a LOD value that you could change that almost eliminated the draw distance completely.
But behold! AssCreed 2 ini files dont have any other settings than those in the in-game menu, let alone a LOD slider. For fucks sake Ubisoft.
http://youtu.be/SZUh-s62Hzg <- look at the shadow draw-in
its beyond ridiculous
edit:
http://youtu.be/X6B21w70W1k?t=1m15s LOOK AT THIS PIECE OF CRAP
this piece of shit isnt even worth 10 dollars (wich i paid for), fuck Ubisoft in the ass, this PC port had like 6 months of difference between the console versions, what the flying fuck?
im mad. AC1 looked a million times better, holy shit.