This problem (I believe) has existed since I first installed Skyrim from disk. The areas which should be transparent on trees and grass are casting shadows, leaving the shadows of grass and trees as a large square-like shadow. I have re-installed the game to find no hope, likewise for trying out other textures people have made for it, but still nothing changes...only my anger haha. Below is a screenshot of the shadow a tree is making, as you can see it is just blocks.
I believe it's related to the fact the transparency in the textures is visible at distance, or when against clouds/water and thus leaving an obvious see-through area looking terribly unsightly.
Here's what the transparency does to water:
I am using an ATI X1950 Pro (512Mb) and 3Gb of RAM. I have tried every last configuration of AA and FXAA and AF to see if anything differs, but I don't win. I was hoping somebody could think of what might be causing this recurring issue. Thanks so much for your time!