Ahh, the good old floating point precision problem :)
In short : object positions are (usually) represented using floating point data types
( google for IEEE-754 on wikipedia, this is my first post on the forum and I am
not allowed to add any links at the moment ).
The thing with floating point data type is that when the numbers are big, they lose precision.
In computer graphics this starts to occur when object position coded in single precision floating point is more than 30 000 units ( usually meters ) from (0,0,0) point.
And it starts to look like the position of the object is "quantified".
Look at the video at 4:05 - the rifle looks like it moves for certain number of
centimeters every frame - its movement is quantified.
BIS should use double precision numbers to store the information about object position/rotation
( it looks like they do this for people in Arma 3 ).
The problem for BIS is that they probably use single precision numbers in hundreds of places
in their code ( rendering, networking, scripting, AI etc etc ).
Big and painful code review is coming to poor developers :)
EDIT : submitted as issue 19751 to feedback tracker.
I also created a mission, that you can download from feedback tracker
and check the issue yourself ( BTW : I found a small lake on a
new VR map. It is located in NE corner ). I also checked that this
problem touches only a soldier equipment.
People ( and things that they carry on themselves ), vehicles and
objects driven by physics are not affected by this issue.
You can check it out by driving a kart in a mission and trying to push a chair.