Verification builds:
1.1.0.9 Retail

Summary:
When a slime block is being moved by a piston near a chunk boundary, a visual glitch appears at the chunk border.

Steps to Reproduce: (Best to check test world attached)

1. Move a slime block with a piston attached to a redstone clock

Observed Results:
A messed up texture appears at the nearby chunk boundary, as the piston moves the slime block.

Expected Results:
n/a

Screenshots/Videos attached: Yes

Notes:
This might be due to the water nearby in the attached test world, and the way transparent blocks are currently rendered.