some armour and weapons are covered with (looks like when your TV is not tuned in and everything is all fuzzy)
That sounds like a classic DirectX problem. Have you tried playing in DX7?
Make sure to have the latest version (1.105) and an updated graphics driver.
Over at Taleworlds there's a larger Tech support section you might want to look at: http://forums.taleworlds.com/index.php/board,164.0.html
Also when graphic bug happen try to alt+tab out of the game then alt+tab back in, first few slow down and bug can be resolved by doing so. (at least for the one I am getting) But this is temporary solution for when they start to happen the frequency will only increase until you fully restart the game (but at least that temporary solution let you finish what you are doing, until you can save, when it work (which is 95% of the time on the first few bug I start getting)