I was recently playing Minecraft release version 1.7.4. I was bumming around in my mine and it was getting dark so I went to place a torch and everything went wrong.

The entire world became one big broken texture. It was see through, it was Flashing all over the place, everything but the entitys were broken. (see attached pictures)

I tried flat out re-installing all the Minecraft data but it keeps happening But only on the latest version.

Steps to Reproduce:
I have found out how to reproduce... I think... When I go into my world sometimes it will be normal but taking out a torch breaks it again.
This also happens in every other world.
and the flashing only occurs when you have an Item (torch) in hand.

1. load up a world
2. take out a torch
3. Get the Error?