When playing with graphics on the Ultra preset I noticed there was a wierd blurriness, softness, outline to everything. I can't explain it, it's quite subtle but just isn't very sharp.
After extensive testing I've discovered that when graphical settings are set to Ultra this issue occurs. It doesn't occur when individual settings are set to Ultra, only when all settings move the overall preset to Ultra.
For others wondering about this, try the following:
Set your graphical preset to lowMove every setting except one
to Ultra, so that the preset moves from Low to Custom (I use either texture filtering, shadows or fog)
The game will then be in high fidelity and sharp without the wierd outline/softness to everything.
If you want to test the issue then observe the sharpness of the scene with these settings, go into the menu and then move that last setting to Ultra and you'll notice the whole scene becomes softer and more blurry. It's like antialiasing is doing a second pass or the whole scene is being reconstructed when the Ultra preset is selected.
If you're on the Ultra preset, changing one setting won't disable this odd effect, you need to move the entire preset to either Low or Medium and then move your settings back to what you want, being sure not to trigger the whole preset as Ultra.
By the way, after testing further this happens with the High preset as well, and only when the entire preset becomes High, so a mixture of High and Ultra won't trigger it. Low and Medium are unaffected.
Hopefully this helps others!