This time I had to get a video because of the issues going away too quickly in one area and cropping up in another. Multiple instances of the rainbow blocks can be seen in the video. This video also depicts minor occurrences of the glitch, as the major ones are apparently camera shy.
http://youtu.be/F6xte9M_B3U
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Duplicate of MC-75948, though this is seem to be more valid.

That other one was mine, I was told to make another.

This was also happening just a few minutes ago on my creative server.

Please force a crash by pressing F3 + C for 10 seconds while in-game and attach the crash report ([minecraft/crash-reports/crash-<DATE>-client.txt|http://hopper.minecraft.net/help/finding-minecraft-data-folder]
) here.

The rainbow blocks (in the bottom left of the video at the very start) appear to be some kind of graphics driver issue. Make sure it's up to date. The invisible chunks popping up all over the place could also be related to this. If updating your graphics driver doesn't help, try disabling VBOs in video settings.

Your Minecraft version is out of date.

I won't play 1.8. It's too laggy. 1.7.2 works just fine for me. Is there anything I could do to fix my game so I can play on my preferred version?

Broken Intel drivers. MC-58760

Downgrading my drivers did nothing to help the issue.