Sure, I will see if I can't hammer one out.
@Eric - Here is a Minecraft 1.5.2.client JAR with the change I mentioned above implemented, I have been giving this out to players on my server to cope with this bug until it is fixed.
Hello there,
This issue is caused by the calculation made when rendering the item frame with the players position and the players distance from 0, 0,0. The output of this calculation is made into a float before a following calculation with the entity frames position, causing it to round incorrectly with large numbers. To fix this issue, the first calculation output needs to be a double before being passed into the second, and then cast to a float after that instead.
Inside RenderItemFrame.java in the function JAD decompiles for me as func_82404_a.
double frameX = (par1EntityItemFrame.posX - par2) - 0.5D;
double frameY = (par1EntityItemFrame.posY - par4) - 0.5D;
double frameZ = (par1EntityItemFrame.posZ - par6) - 0.5D;
int var13 = par1EntityItemFrame.xPosition + Direction.offsetX[par1EntityItemFrame.hangingDirection];
int var14 = par1EntityItemFrame.yPosition;
int var15 = par1EntityItemFrame.zPosition + Direction.offsetZ[par1EntityItemFrame.hangingDirection];
double oX = var13 - frameX;
double oY = var14 - frameY;
double oZ = var15 - frameZ;
GL11.glTranslatef((float) oX, (float) oY, (float) oZ);
Sorry it took me a little longer, I've been caught up with some things! I can only apologize, here is the patch for 1.6.2 and the instructions on how to install it into your client. The instructions below assume you are using a client with no other mods, if this is not the case you will probably know how to place it inside the JAR with your mods.
1) Download the 'bgs.class' file located here: http://www.kruithne.net/minecraft/bgs.class
2) Navigate to the 'versions' folder inside your Minecraft installation. (%appdata%/.minecraft/versions)
3) Copy the folder called '1.6.2' and call it anything you want, for this example we will use 'itemframefix'.
4) Go inside the newly created folder and rename both the files in there to the same as the folder, so 'itemframefix.json' and 'itemframefix.jar'.
5) Open the JAR file with an arching program such as WinRAR.
6) Delete the META-INF folder if you have not already done this for other reasons.
7) Copy the 'bgs.class' you downloaded into the JAR file and close it again.
8) Open the 'itemframefix.json' with a text editor and rename the 'id' on the second line from '1.6.2' to 'itemframefix'.
9) Run Minecraft and edit your current profile (or create a new one). Under 'Use version' select 'itemframefix'.
10) Your Minecraft should now be set to have steady item frames once again.
For people with other mods, simply dropping the class file in with other mods should be fine but I cannot guarantee that they will not conflict with one another if the other mods touch item frames rendering in any way. This patch is intended for use with vanilla Minecraft installations.