Hey Accel,
This is quite the interesting issue, and seems like it should be something fairly easy to reproduce. Would you happen to have some simple steps so I can reproduce this in a blank template project like the Third Person Template using the Starter Content?
Could you also provide me with your ‘dxdiag’ so I can take a look at your systems specifications?
Do you think it could be a driver issue? Make sure you graphics drivers are up to date and see if that has an affect on your issue. Let me know if you have any further questions or need additional assistance.
Cheers,