kodeen: Yeah, when you max out the draw distance in the game menu the texture loading still happens in between you and the edge of the loaded fixtures in the game, which is weird. There's an "ultra ini" file out there, but even on my pretty good system (Phenom II x4, overclocked GTX 460) the stuttering when loading new areas (especially cities) was so bad that I reverted to the menu generated ini, with it's bubble texture effect. You get used to it.
I just tried editing the .ini to use the maximum view distance and loading/prefetching settings allowed in the game engine... the view distance is quite good now (full detail out to the edge of the game world), but the game itself seems to have broken in a spectacular and hilarious fashion. NPCs appear in T-poses and seem to be stuck that way (don't seem to be reacting to me in any way - some creatures seem to move around by teleporting infrequently), Nameless Hero seems to be able to walk through any object that isn't part of the landscape, and falling from things seems to cause issues... lets just say I'm now floating hundreds of meters above the ocean at the edge of the game world after falling/sliding off a rooftop in Ardea.
Also, the game is using 2.5GB of RAM O.o
Performance-wise, I'm getting a good framerate, though the stuttering is pretty bad (not much worse than it was before modifying the settings though - I think if I had faster/better RAM and maybe a SSD it would perform fairly well).