This is a common problem. Its not just your system. It happens even on my system. I have a 7800GT.
All my friends also complained of blocky shadows.
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Q6600 G0 (TR Ultra-120), ASUS P5N32-E SLI, eVGA 8800GTX Superclocked (TR HR-03 Plus), Samsung 940BW, Corsair Dominator PC2-8500, CM Stacker 830, 700GB Storage, Corsair HX620W, APC Smart 750VA
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