Resolution of shadows in Skyrim depend on amount of them at the moment within your FOV (the less it is, the better quality). Reducing shadow draw distance would increase the quality of shadows. Generally speaking, the higher allowed draw distance and higher your FOV, the lower their resolution.

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AMD FX-8320 @ 4.5Ghz OCed, DDR3 4GB@1600mhz CL9, ASUS Radeon R9 290x DirectCUII, Win7 x64.

Right. I have a low FOV. I left it where the launcher set it during initial install, 65. My draw distance is 3500 int, and 4000 ext.

The problem is it's only certain shadows. Like the shadows under my characters breasts, and only in direct light. For example, when I'm standing right in front of the fire in the middle of Dragonreach. If I go to somewhere the light is not so direct, the shadows smooth out and look the way they're supposed to look.

That type of shadows is not the same as sun shadow and use different parameters in skyrimprefs.ini (don't know which).

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i5-4690k, 16Gb RAM, GTX 1060 6Gb, X-Fi Titanium, Win7 x128
I am INFP, not the brutal, godamnit.