I am having the same problem.
Regardless of updated drivers fixing this issue, SE should include an option (as in FF11) as to how many models are displayed at one time (a min/max bar of some sort).
I'm assuming this will be included in 2.0, but if it isn't already planned, please consider doing so!
Update: I have installed the most recent Catalyst drivers (beta) and am experiencing a significant improvement in character model display and continuity, as well as an overall increase in game performance (model loading time, along with cleanliness of action graphics and overall smoother gameplay).