Name shaking very badly (with video)

I have made a very short video to show the problem. Best viewed in full screen mode, and keep an eye on the character name.

I saw another post regarding this, but that post is locked, and I hope that the video will show some proof.

The name shakes wildly when running down a hill or slope (this video is on a slope, no stairs). In first-person mode the ground close to you also shake like this when running down a hill. Running up a hill does not have this problem for me.

Video (not listed, you must have the link to find it):
http://www.youtube.com/watch?v=XRafwNcvRr0

Latest Patch: 1.17b

PC Specifications

• RAM: 3 GB
• CPU: Inter Core 2 Quad Q6600
• OS: Windows XP SP3 32 bit
• VGA: NVidia GForce GTX 260
• VGA Driver: ForceWare 270.61

Video Settings

• Mode: Full Screen
• Resolution: 1920 x 1080
• Multi-Sampling: 4x MSAA
• General Drawing Quality: 8 - Standard
• Background Drawing Quality: 3 - Standard
• Shadow Detail: Lowest
• Ambient Occlusion: Off
• Depth of Field: Off
• Texture Quality: High
• Texture Filtering: High

In game video settings

• Extended Drawing: Off
• Dust Effects: Off
• Shadows: Off

I get between 45 Fps and 60 Fps with my current settings.