Emulator

Ever since the shadows were fixed in Luigi's Mansion (GLME01) in 4.0-1288, some odd issues have been present that almost resemble z-fighting. While console has some issues that are like z-fighting, such as the stuff on Luigi's face, this issue is different from that, and makes everything appear MUCH worse in Dolphin.

Console - http://i.imgur.com/3aUi086.jpg
Dolphin - http://i.imgur.com/uvmoOrz.jpg
Circled to make sure you see it - http://gdurl.com/TX4K

It commonly results in a "window blinds" appearance, so I'm calling it that for lack of a better idea. Whenever the camera moves they swirl and dance about, so it's extremely distracting in game. And these problems are EVERYWHERE. It appears to be related to the object's position away from the camera. For example, in the screenshots above, it happens when Luigi is close to the camera or in the middle of the screen. If he moves close to the wall where the blinds appear, the blinds vanish. This only appeared after the shadows were fixed, so apparently it's a TEV issue.

Tested Interpreter, Single Core, EFB to Ram, OGL/D3D switching, RealXFB, on and on, nothing fixes it. Except software. The shadows are working yet the blinds bug does not happen. Only the little bugs that occur on console happen in software. I even ran there in software to make sure it wasn't a fifolog derp - it wasn't. Confirmed that the bug does not occur in software.

To reproduce... just play the game. It's everywhere. However, the section in the screenshots is easy to reproduce. Go upstairs, through the double doors, and then enter the door on the back right to enter a hallway. That's it. Or just use the handy fifologs.

Standing fifolog - http://www.mediafire.com/download/hhozh2e2kqc70jo/LuigiBlinds-Standing.7z

Running fifolog (very obvious and shows it disappearing) - http://www.mediafire.com/download/eh7a9p45765oy7y/LuigiBlinds-Running.7z

Tested revisions:
4.0-1226 x64 - No shadows, no bugs
4.0-1246 x64 neobrain tev combiners branch - Shadows, and the blinds bug
4.0-1288 x64 - Shadows, and the blinds bug

Tested on system:
Windows 7 x64
Core i5 3570K @ 4.7ghz
Nvidia Geforce GTX 760