Haha, I figured out what it was. I didn't think I changed anything on my PC that would effect Arma but when I started to play with my gfx settings a lightbulb went off. So the night before a friend of mine came over who had just bought his first little gaming computer. I was showing him my 3D surround setup, but prior to that I had the Stereoscopic 3D option totally disabled/unchecked in the Nvidia control panel. For some strange reason, if you have 3D Vision active (not even on for Arma but running in the background), if you play the game in Fullscreen+Window mode it will cause these artifacts when you're playing a night time mission in Arma.
So this has nothing to do with Saok's mod, but it just Arma and 3D vision not playing well together. I would love to see BI fix this though, as pretty much every other modern game I've played handles 3D fairly well. I have a 3D screenshot from this mod in fullscreen mode, but photobucket won't recognize the .jps format to let me upload it. It seems like there's a problem with 3D rendering of models (players, trees, etc).
TLDR: The workaround is to play in Fullscreen only mode if you have 3D enabled (not actively running while playing Arma though), or totally disable 3D in the Nvidia control panel so you can play in full screen window mode. Seems to only affect night missions atm. I have 3 monitors so I like the convenience of alt-tabbing without minimizing the game.