You need to increase the quality of one of the settings to get rid of the color floaties.
I can't remember which one caused the floaties, but adjust one setting at a time, and test after each change. That way you know which setting caused the problem.
These are my settings after i fixed the issue.
INI:
[ScalabilityGroups]
sg.ResolutionQuality=75
sg.ViewDistanceQuality=3
sg.AntiAliasingQuality=3
sg.ShadowQuality=3
sg.GlobalIlluminationQuality=2
sg.ReflectionQuality=1
sg.PostProcessQuality=3
sg.TextureQuality=3
sg.EffectsQuality=3
sg.FoliageQuality=3
sg.ShadingQuality=3