glitchy screen
I have the same problem for version 1.9 when creating a new world only. Screen is glitchy. Can't see the true terrain around me, like it can't seem to figure out my POV. The only things that seem "anchored" are the mobs like sheep and chickens. See attached files weird[1-4].jpg.
Updating my video driver seemed to solve it. In Windows 8, Control Panel, Device Manager, Display Adaptors. It stopped the lagging and screen glitching mostly*.
BEFORE: AMD Radeon HD 6300 series
date: 10/10/2013
version: 13.151.1.3000
AFTER: AMD Radeon HD 6310
date: 7/4/2014
version: 13.251.9001.1001
However, beyond a certain distance it does look unfinished until the chunks have loaded. There was a session when I increased the chunk distance while playing a new game, that it glitched badly in unloaded chunks, and monsters looked weird in good areas, but that has stopped. Both these happened after I updated the video driver.