strange graphic issues...pics included

my wife is trying to play, but while she is making a character its getting weird graphic issues when she changes the environment. game is completely unplayable after character creation. messed with graphic settings (shadows, etc) pics/specs follows.

Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7601) Service Pack 1 (7601.win7sp1_gdr.120830-0333)
Language: English (Regional Setting: English)
System Manufacturer: Hewlett-Packard
System Model: HP ENVY 17 Notebook PC
BIOS: InsydeH2O Version 03.61.01F.1A
Processor: Intel(R) Core(TM) i7-2630QM CPU @ 2.00GHz (8 CPUs), ~2.0GHz
Memory: 6144MB RAM
Available OS Memory: 6092MB RAM
Page File: 2787MB used, 9393MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 120 DPI (125 percent)
DWM DPI Scaling: Disabled

http://i359.photobucket.com/albums/o...ps690b53ea.png

http://i359.photobucket.com/albums/o...psf24c4cb9.png