The World Turns Blue

When I load up Minecraft. everything seems fine, even my skin is loaded just fine. Im able to run around the world just fine. On my server its the same, Im even able to use my donator perks. But soon as i break a block, even a block of grass, the whole world turns blue and transparent. I try and log out and back in and it still happens.

So I tried to delete minecraft, even the destroyed the .minecraft folder. I re-instal minecraft load it back up and in 1.7.4 and 1.7.8 and try and break a block and it happens again.

So I have no clue how to fix this.