Google Earth was just updated, and they've fixed the 'quilting'....
Hmm I've got 6.1 but it's saying that there are no updates available. Not to worry I don't mind waiting! Getting rid of the quilting will be great for making textures.
My thoughts exactly.
I have it installed, but downloaded the file linked there - it's a beta version, it seems.
Here's the about info:
Microsoft Windows (6.1.7601.1)
Max Texture Size
available video memory
Oh, this is NIFTY! It's much smoother looking now!