Basically, we checked it on 5 different computers. BEFORE the patch, the shadows were great, smooth, and beautiful EVERYWHERE. AFTER PATCH 1.4, THE SHADOWS BECAME JAGGED!! and everywhere, not just in combat mode - I only noticed this now.
That's the problem. The computers are all very, very different, ranging from a weak Celeron with integrated video to a quite decent one, as described in the header.
I ask you to check the shadows before 1.4 and after again (especially noticeable in combat mode, because the camera is closer to the ground).