I see this as well. My diagnosis is that when the game computes the area that needs to be covered by the shadow map, it somehow fails with certain camera angles and produces a hugely oversized area, thus enlarging the pixel size of the shadow map. How it fails, I can't say for sure - perhaps something to do with tan(x) tending to infinity when x nears plus or minus 90 degrees?
My system: WinXP SP2, GeForce 7900GTO, 178.24
Settings: 1680x1050, high detail, no AA
I don't think this is a driver issue though.