Just built first PC, need a bit of help

Hello, I have recently finished building my first PC after watching some guides/videos here and on youtube/reddit. It took me a bit because I was extra cautious with the parts but I was able to put everything together and it loaded up fine. I installed Windows 7, some drivers off the MB disc and after SP1 a few windows updates. I also loaded the latest Catalyst drivers. After loading some basic programs like firefox, crap cleaner, and MSE I decided to try out a game. I chose JC2, and initially was surprised to see it run so smoothly but started noticing a few things on far away objects. On some far away objects (mostly trees) they will appear to be faded, but if I zoom in on them with a weapon or come closer to them they appear just fine.

Here is what I'm talking about:

It is most notable near the crosshairs.

What could be causing this? I disabled aero because I was having trouble alt-tabbing and it crashing the game, so I've already done that. I did notice under DXdiag it shows my card as having 754 MB available memory, when it should be 1GB.

Windows 7 Home Premium SP1 64-Bit
Catalyst 12.6 drivers
Power settings - High Performance
i5 2500k stock
8 GB ddr3 ram
Radeon 6570

Is this a windows update or motherboard update I'm missing? I'm downloading another game right now to test but for now this is all I can use. Aside from the far objects the game runs perfect. Not sure if it's the game or my PC; any help is appreciated, Thanks.

Edit: Just updated directx and installed some components it said were missing; the trees are still like that though and I've tried a few in-game options that don't change it.

Here's another picture:
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  1. Maybe I misunderstand you, but it sounds like you are referring to "Aerial Perspective" which is a normal visual phenomenon in the real world. The things we see do look faded as they get farther away do to the atmosphere . It is probably just more pronounced in the game to give it a somewhat heightened sense of depth.
  2. It could be, but I'm not sure if I remember seeing it like that on my older PC. It just seems like there are missing pixels on the trees, and when I looked for some other SS online I found this which was nothing like mine: http://i.imgur.com/gavSy.jpg

    Edit: I just turned shadows from medium to low, and the trees appear to be fine. Any idea why some of the trees have missing pixels like that with shadows on medium/high? Is it a setting with CCC or a driver failure?
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