I am still having the character shaking/jumping problem as well. I am on Win 7 x64 using an ATI Radeon HD 5830 with a DSL connection.

It happens all the time, in any area as long as my character is walking down. The name is less shaky since the update but the camera and my character are even more now.

I am really hoping this will get fixed as it gets very annoying, although not gamebreaking.