It's an issue throughout 3D graphics in general (at least it was). It would happen even in Max/Maya/XSI. The emblem texture you see is on a separate surface (polygon), which floats a miniscule distance away from the ground like a decal. Thing is, as the camera draws away the engine gets confused and the two begin to clip together causing the flickering mess. There'll be a more scientific/technical way to describe what happens, i'm sure.
Could the custom projection hack help (game properties)? I haven't experimented myself, but if it relates to clipping planes/draw distance, it might be the ticket.
Could the custom projection hack help (game properties)? I haven't experimented myself, but if it relates to clipping planes/draw distance, it might be the ticket.