Magic white blobs at side of screen

[Tigger (DayZ) 24]

Is it not linked to server difficulty? IE regular, Veteran etc?

No, it's a server side setting that appears to be mostly on and not cared about.

[Zymi 64]

Turns DayZ into spin around in circles watching the sides of your screen for any dots. Terrible immersion breaking abused "feature".

[Pvt. Kairis 14]

This has been on since the mod started. or at least since ive been playing (quite a while now) and as stated before its in arma 2 anyway (players are green, zombies/npc's white) although I think the player dots are seen a much lower distance and from behind cant see at all