This isnt a problem as such, but if i pan the camera down to ground level, i have these funny purple squares, appearing about the place, does anyone else have this problem, ive got a feeling this could be another glitch in the game! If i have reflective water on, it shows up like a sore thumb,

This is probably caused by the support killers from Steelworx, as I remember there was a problem like this mentioned several months ago in JCat's thread.

You can either sink the support killers completely below ground, or re-download the Steelworx set, which was updated to fix the problem.