It happens in ME1 and ME2, actually. I can't get the screenshots from ME1 to work for some reason. It's very minor in ME1, and only happens in a couple of the random planets. When it happens in ME2, due to the higher resolution, it's painfully obvious. I can hop over to the Presidum and Tuchunka in a little while and grab some screenshots. I tried to find a video example of it online. I was only able to for BF3, I found videos for both Skyrim and BF3, but the effect is the same. It's most noticable in close-ups, so I'll try to trigger a conversation.
Definition of Z-fighting: http://en.wikipedia....wiki/Z-fighting
If you just want an example of the effect in general, then I won't re-do the SM. The only times that happens in the SM is right before you find the Baby Reaper and right before you fight it, and I don't think I'm up for going through the SM so soon. 
Edit: While I wasn't able to get a good screenshot of the glitch in a conversation, this is what it looks like in the (ME2) Presidum in general. Note the top of her head. She isn't using an imported mesh, and the only tweak I did was make her eyes a darker blue. You might want to click on the pics to get a higher resolution, but you should see it. That effect is magnified greatly in cutscenes. According to my research, this happens on the Xbox 360 as well. The worst is when you're talking to the Council with Anderson and Udina walks in. Sadly, I don't have a save from right before that, but here it is in gameplay. I couldn't get a good shot of it, but it affects weapons and it affects Anderson too. It's a constant flickering:
The areas where it hits the hardest in cutscenes:
1) The Presidum (though you can tell it affects in game play.) Next time I play through ME2, I'll make it a point to take screenshots when Shep is reinstated. Holy cow, this glitch is the worst during that conversation, and as you can tell by the definition, there isn't a thing the player can do. This is an issue in the programming of the game itself unfortunately. If this thread is inactive for whatever reason by the time I play again, I'll PM it to you directly.
2) At Tunchunka during the first few conversations at the Urdnot camp. Best time to look for it is when Wrex stands up to greet Shepard, and those first dialogues. I did notice it when I was running back to test, but the only save I had for testing was after Grunt's mission when the effect diminishes (after my first conversation with Wrex.) It still happens, but it flickers so quick and is minimal enough on Wrex that getting screenshots is actually a pain.
3) The last two cutscenes of the SM, the one where your final squad is floating up the the reveal of the Baby, and the other is right as the Baby Reaper pulls itself up so it can get nuked. Though the boss fights and the rest of the scenes afterward the Baby is dead are normal.
The rest of the game is normal for me (PC, Origin digital version.) In ME1, I only ran into it 2x and it wasn't in a cutscene. Just a bit of glitching at the top of the head. They weren't on any major missions, so I don't know what planets exactly happened on.