So basically, when I have water set to very high, any object with it's back to the water has a strange white 'flickering" outline.
If I turn anti aliasing to 8x, it almost fixes the issue. It is greatly reduced, and far less visible. If I put AA to 0x and water to low, it completely solves the issue.
I'm convinced that it's not a GPU problem, as I've run 3dmark vantage, OCCT gpu for 1hr, furmark for 30 min, and unigine heaven with no artifactnig whatsoever.
Things I've tried include: Changing water options in the crysis cvargroups to see if I can see what is causing it. I've tried all drivers between 9.12 and 10.6. I've tried changing sprite distance, foliage distance, installing the Crysis demo (issue was still persistent), forcing DX9, etc.
I installed my 8800gt, and the issue went away, but I'm still not entirely convinced that it's a GPU issue, as I've put over 20 hours into other games since discovering this and experienced absolutely no visual anomalies.
Also note, I've asked on overclock.net (GPU is not overclocked) and many of the users said that they didn't see the issue.
Make sure you set the video to 1080p, and look around the branches of the foliage infront of the water.
Also note that my temps never exceed 80c even in furmark.