What do you mean jump from lowest to medium to high?
Do you mean the settings in your options change?
or
Do you mean the graphics go from low quality to medium quality to high quality?
What you're most likely noticing is the LOD system at work (Level of Detail). When you are far away from objects they are rendered as spirtes (flat 2d images rotated to face you camera) rather than geometry (polygons).
As you approach the object it turns into geometry. The LOD algorithm in Guild Wars is very aggressive so if you look closely enough you can actually notice the change from sprite to geometry as you move near the object in question.
Not everything has a spirte, just background objects like tents, yaks, towers, etc. Anyway, if that's what you're noticing then yes, it is normal even on a high end system.
(It happens on my 3.2 gig p4 running an ATI x800xt so I'm sure it happens on everything.)
Hope that helps.
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