Since the update 1.56.134739 I seem to have the same/similar problem.. No matter how I set the view distance, it always stays the same. This picture is on the server EUTW which should have a view distance of about 2800m or so, but for me it's the minimum of 500 while I have it maxed out in video options. When I play on Sa-Matra's KOTH I am able to increase the view distance through the KOTH ingame menu, however my settings at video options still don't have any effect. I have tried re-installing arma, deleted my profile etc (including mp mission files) but I haven't come across any solution..
EDIT: It's very weird.. when I tried eden editor to see if I had the same problem as in multiplayer servers it looked like it was the case at first. But when I loaded in as a player, something happened and my view distance had gone up.. (I turned back to editor and took this screenshot)
