See screenshot. It seems to be a generation problem as when i reload the save several times at different places and movements it loads correctly. Render distance is 12 chunks. with graphics fancy and smooth lightning on Maximum and OpenGL off.
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Some more pics. It also seems to only happen with oceans. But im testing some more.

I've done some more extensive testing, and i found floating mountains and i even found floating SINGLE blocks in the AIR! It was 1 block of stone and a block of dirt. I couldn't record this because i forgot to push F9 in FRAPS(_). I'm trying to find more floating blocks.

MC-129
Pretty sure that's this one, one of the older bugs in Minecraft.
But apparently, it might me worse now with the new snapshot, at least I experienced it more common now.

Yes but those floating blocks too? And it seems to also happen now even when you are (really) close to it. It became more annoying now.

Well, that's just the generation. Happens quite often.

It NEVER happenend to me and i play since Beta 1.5_1

Generation changed in the 1.7 snapshots, keep that in mind as well!
But apparently, I had one of those in an alpha world.