The game ESO has issues with shadows out of the box, it seems like the depth of the shadows is wrong. This is not a perfect fix for it but doing the following for me seems to correct the depth and makes keeping shadows enabled playable. On the other hand this makes the shadow placement slightly offset from where it should be but I can live with that.
using G3D shader authoring:
– Add pixel shader with hash 492777261 to the active shaders list
– Set modifier to “No 3D FOV Enhance”
If anyone found a better shadow fix for this game, would love to know!