It's not normal per se. It's a disadvantage of certain commonly used methods of improving performance for LoD and distance textures.
A lot of games save on memory by using a low res texture from a further distance. And then loading the higher res texture when you get closer, however because of the way a lot of engines work (most prominant nowadays in the UE3 engine) sometimes textures just dont load when they should and either stay low res, or appear to 'pop' in from nowhere.
Speculation puts this at a number of points, some people claim it's because the textures must be loaded from the disc instead of an HDD, and sure, that might not help, but this happens even on high end PCs on games such as Bioshock and Gears etc.
Theres nothing wrong with your game, or your xbox ;)
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