ATI 10.12 Graphical Glitch
I'm running the 10.12s myself and not seeing that. Have you tried going back arevision or two and seeing what happens? Also, perhaps check your temps when ingame (unlikely to be the issue though methinks).
I've heard of that happening to some people after updating their driver for some reason. Usually doing a "verify files" fixes the problem. I hope that works for you.
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Yeah, I haven't seen this on any of my Radeon graphics cards. Then again, I'm in the habit of running Driver Sweeper before running any graphics cards updates on a Microsoft Operating System platform: http://www.guru3d.com/category/driversweeper/
I've heard of that happening to some people after updating their driver for some reason. Usually doing a "verify files" fixes the problem. I hope that works for you.
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It never happened to me personally either, but I figure it's worth a shot. When the text or interface becomes corrupted, verify the files. I couldn't say for certain if it's even related to the graphics card or updating drivers at all, but we've seen people in the past mention updates before it happened to them, so who knows.
I upgraded to the latest ATI Graphics drivers last night (dated 12/13/2010), and ever since I've noticed a strange graphical glitch with names of players, NPCs, basically anything with a floating name.

Here's what it looks like:
This is with Windows 7 64bit and an ATI Radeon 4670 card. The text doesn't always look like that, but it does happen a lot.