Specular lighting

[Meretrix]

I seem to remember the environment and terrain reflecting light (most noticeable in Giant Hold) I have all my settings on max and everything else looks beautiful.
Toggling specular lightning on now seems only to turn on static environmental highlights. Ive got all the latest video drivers and, like I said everything else looks fine.
Has anyone else noticed the ground now looks flat and dull?


[EDIT]
Ive currently got all my settings on ultra, I went through all my graphics settings one by one turning them to different levels to test their impact on lighting. I can confirm that everything else is working fine. It's not my video card or my drivers.
It has to be something done to the game in a recent patch. Before I took a few months off specular lighting used to be applied to terrain and now its not. Somebody else please confirm!