Going by the video, I agree, definitely looks like the ASW effect. It doesn't look that bad normally (I just see some minor bleeding on the solid coloured menu bar as you move it around).
If it is just ASW, there's nothing wrong with your Oculus. However, you are running a low-end GPU, which actiavates ASW more often and for more frames.
Your GPU is struggling because ASW is obviously making up 2 and possibly 3 frames for each actual frame - so the distortion on straight lines etc can be quite... bad.
Your version numbers are the same as mine. If there's an update out, its not being forced yet.
Recommend adding the registry key if it isn't in there and you're still on v1.9 - then just press Ctrl-Numpad1 and it turns ASW OFF and only ATW will fill in frames.
But on your GPU you will need to turn some settings down... make sure you have SS in ED set at 1.0, and HMD Quality set at 1.0, and judge it from there.
For your GPU, turn off motion blur. Turn off ambient occlusion, turn off depth of field. Turn shadows to medium or low.
If you have th Oculus SDK installed, use it to get the APP Render Timings HUD up when you're in a game- you can see the time it takes for your CPU nd GPU to render 1 frame - if its near 11.1ms (the max time allowed at 90fps) then ATW will insert a synthetic frame - before you miss the 11.1ms deadline and you actually drop a frame entirely (bad, especially for those sensitive to motion sickness).
In stations, you'll be missing frame submits a lot (even a GTX1080 does), but in space etc, it should be few or none.
Try it and see.