Originally Posted by Sean_W
Bethesda didn't drop the ball, they just left the Xbox360 settings in the default config for the PC. If you look at the config, just like their other games, the settings have no PC options at all. Bringing the games graphics out of 2006 requires some heavy tweaking and modding.
Edit: Primary and secondary shadow size set to 4096 seems to do the trick.
Except they linked distance and quality, which means if you want distant shadows you end up with blocky shadows up close. There are some settings that help with this, but even tweaked as much as possible you either end up with a stunted shadow range or ugly shadows up close, you can't have both.
Like I said, it doesn't really kill the graphics for me, and if you are in first person most of the time you really don't notice it as much, but they did a poor job on them.