Can't seem to see anything wrong with it. Oh actually do you mean the "spikes" or sharp edges at around the middle of the picture?
Yes I mean the hundreds of stretched out faces that appear all over the map.
I've noticed it only happens in DirectX games.
It's a graphics issue. I used to have the same issue. I am willing to bet that if you ALT-TAB out of the game and then back in, those will be gone. They may or may not start up again at that point. However, the ALT-TAB method is a band-aid to the problem, not a fix. Try making sure your graphics driver is up to date and that your DirectX is up to date. If the problem persists, try switching video cards (if this is a feasible option) to test it. If you are using a vid card, try switching to onboard video, just as a test. If that fixes it, then the problem lies with your card. However, it may not be the card itself. It could still be a software issue, which is why I recommend starting with the driver/DirectX updates.
I was having the same issue and was getting a lot of clipping as well.
I updated the drivers yesterday and I think it reduced the spikes a little, though there are still a bunch of them. Alt-Tabing only makes it worse.
Which videocard do you own? Are you sure it's not overheating?
Assuming your drivers are OK and your card should be up for the task then I've seen this happen because of overheating.
If you continue getting problems then I've suggest checking inside your case to check that your heatsink/fan isn't filled up with dust.