Really REALLY pixelly model shadows?

is this something to do with my GPU or system specs, or is it just a bug with the recent update?

GPU: 1024MB GeForce GT 240 (PNY)
RAM: 4.00 GB DDR2 at 276MHz
CPU: AMD Athlon 64 x2 4600+

[editline]2nd February 2013[/editline]

notice how it happens on barney but not the female citizen. it also happens on the SiN episodes models and the hl1 headcrab

Looks like perhaps Source doesn’t like the HD model pack for Goldsrc