Render Distance when modified causes huge chunk errors

When I created a new world in 1.8-pre2 my render distance was turned down to 8 and as I generally run at a smooth 16 chunk render distance I changed my render distance to 16 and then the glitch began. Each screen shot is of from 8 to 10 chunks. Was able to replicate over 30+ times. more screenshots available if needed.
What I expected to happen was...:
Minecraft would render chunks without a problem at 16 RD setting.
What actually happened was...:
From RD's 10-16 chunks flip-out and random parts of the chunk flash over and over in a repeating pattern. At RD 16 the game is unplayable.
Steps to Reproduce:
1. Generate a world or open a already created world.
2. If your render distance was already at 10 to 16 chunk RD then you will begin to experience the error.
3. If your render distance is 8 or lower then change your RD so it is at least 10 RD and at max 16 RD.