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The solution that really worked is based on a post of another friend in a previous topic, with some other tweaks.
Because I don't know which of the above 2 files is responsible for the changes in game, I applied the same settings on both files and then made them "Read Only".
LightEnvironmentShadows=True
ShadowFilterQualityBias=8
MinShadowResolution=256 (default was 32 and 128 on each file)
MaxShadowResolution=2048
ShadowFadeResolution=256 (default was 128)
ShadowDepthBias=0.100 (default value was 0.012)
The last one is what does most of the job, by limiting the body shadows on larger parts. Also, by increasing the shadow resolution, the remaining shadows are not "waves".
If the result is not good enough for you, you can increase the ShadowDepthBias to your liking
i5-2500K with 7970GHz edition
This fixes everything. Everyone should know about this.
If this still doesn't fix all of your problems, many have success turning LightEnvironmentShadows=False. The other changes can remain.
Worked for me (Radeon r9 290 directcu II)
LightEnvironmentShadows=True
ShadowFilterQualityBias=8
MinShadowResolution=256 (default was 32 and 128 on each file)
MaxShadowResolution=2048
ShadowFadeResolution=256 (default was 128)
ShadowDepthBias=0.100 (default value was 0.012)
Thanks panther_512 for the fix
Im on a i7 3770 and GTX1070