Latest Snapshot creates an annoying "grind"

Tried the latest snapshot. Loaded my world only to find an annoying "grid" Covering all surfaces. Only happens at a distance, clears up when i get close.
Problem persists When using default textures, so its not a texture pack issue.

Changing to an earlier version got rid of the grid.

AA is disabled in Nvidia control panel, using 64bit Java, All drivers fully updated.