UPDATE: I've found a solution that works for me! In the graphics settings turn on 1) Use Low-detail models on distant objects & 2) Cache LOD data only when necessary (LOD Streaming). Distant objects won't be as pretty and you won't see players or NPC at LONG distance but you will still see enemies. I've just played for about 18hrs with NO PROBLEMS including in a Hunt and in the crazy Moonfire Faire events.

Hope it works for you!