It looks a bit like the game Borderlands, and it's the same single player as multiplayer. When I use the Sphax PureBDCraft texture pack it also has a small square in the middle as a cursor which looks like it's giving me x-ray. I have no mods installed or anything and i've looked everywhere please help!!
93 Answers
You have switched on the "wobble" experimental shader by clicking the Super Secret Settings button.
The "Wobble" shader:
Colors cycle through the hue range constantly. All displayed pixels move up and down via a sine calculation. It should be noted that this only affects the screen plane and not the vertices being displayed by it, as observing the very edge of the screen reveals the pixels being moved.
Shaders can disabled by pressing the F4 key or restarting you Minecraft client.
This looks like you have clicked the super secret options which uses experimental shaders
Go in and cycle through these until you get back to vanilla
Vanilla Shaders were added in 1.7, and you are currently in the "Wobble shader." To disable this, press F4.