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I've also noticed that the bug only happens when the shadow settings are on the lowest, as soon as I put them on med, the problem goes away. I also lose like 15fps when them on medium so I have to keep them on the lowest.

This was on both 0.0.7 and the one before it. That is when I started playing so I can't say if it was in ealier versions. I have a 2630qm i7 quad core 2.9ghz, gtx 460m with 10gb ram on windows 7 64bit.

I'm having a bug where when I tun on the forge the lighting flickers when I move the camera. It only effects the outside next to the forge and when I go back inside it doesn't flicker until I go outside again.