Better bumpmaps?

[kraid]

You should try a different mipmap filter when compiling the texture to vtf.
What are your current settings for the vtf?
Are you using any kind of compression (e.g. DXT5) on the normalmap?

[Stormy]

That's just anisotropic filtering, turn up your graphics settings.

[nub]

Maybe it's just not saving the mipmapping for the normal?

PS: I don't think compression of the normal map would cause this issue. All that happens when you compress a normal map is you get artifacts, but they don't cause this to occur.