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I think that's some kind of dithering. It happens at other times too, but it's not as noticable.
Ah, as I had suspected. Unfortunate that for as I mentioned, it quite spoils those moments. Can't say as I've noticed it elsewhere, but now that you've brought it up now I'll be looking for it.

On the whole, when we first booted the game up, as soon as I saw the wind blowing Links cell shaded hair any concerns about the 'look' of the game vanished as the 'wind' took them away. As we've continued the adventure, other than the 'dithering' effect alluded to, I've been impressed with the various lighting effects. I applaud Nintys choice for cell shading. As others have noted, the game has brought back earlier 'feelings' from earlier incarnations. I think the 'animations' are first rate, and I've enjoyed a lot of the dialogue text. My daughter and I have laughed out loud in places..."FWWWIIPPP! I say!" And we had to pause the game and howl when Link went up to the large pig back on Outset, and it tried to run away . The animation and sounds were a hoot! This kind of stuff is scattered througout the game and it's these little gems that lift the game to a new level of fun and enjoyment. Much like a Chuck Jones cartoon, this game operates on more than one level. I honestly don't know how Nintendo is going to top it in the next incarnation.
Game play is spot on, though I must be loosing my game chops. I've actually died a couple of times. Imagine having your enemies actually block/parry your attacks? Unlike Z: OOT the bad guys don't wait and attack you one at a time when 'targetting'. What a concept. I also like how the enemies react to your actions, their AI I guess. When I was fighting some Moblins I took out a bomb, when they 'saw' what I had, they ran away so the explosion wouldn't hurt them. I had dropped it down in front of them while standing on a ledge. After it exploded, they returned to the attack. Pretty spiff I thought.
Major thumbs up on this one Ninty! Very well done.