This occurs in both versions: As you increase the render distance up past about 14 chunks, it starts having issues rendering and begins flashes random generations in an area based upon the size of the render distance.
NOTE: This only seemed to start occurring after I entered a mine cart.
Environment
Windows 7 Home Premium-64 Bit, Java 7 (Update 67)
This happens to me too no matter what but it only happens at 19 or greater.