Created New world with default settings spawn looked fine but not far from spawn started getting chunk errors. The further I got out the worse it got. I have included a link to a video of what I saw. http://youtu.be/NKDX29RUHhI
I have re-created this multiple times after reinstalling the minecraft jar. Also this world is being created in single player using no mods or resource packs
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Your video cannot be watched ("Browser doesn't recognize any of the video formats").
Please describe the problem by words and attached screenshots.

Apologies... Apparently youtube hates me today too... I have attached screen shots from the video. The further i go out from spawn the worse it gets... The files are numbered and each one is further out from spawn.. The furthest is about 300 blocks


I was unable to re-create the problem using the method you described. Sorry to inconvenience you with a repeat bug...

No problem.