Problems with this game on the X360?

Is anybody having graphical problems with this game when played on the Xbox 360? Im having a problem with the characters. When the fight starts its like they have invisible boxes all over them and it distorts their graphical image. The game itself plays perfectly, its only this cosmetic issue.

Is this a known/common issue or is my game just glitched somehow? Thanks in advance for helping me out.

i dont know but i recently found out that older hdtv sets have lag or something