Ok, hold onto your hat....i got it to work!!
I tried to lower my screen resolution, but that didn't work (screen looks weird/stretched) so it is currently at
1366x768 (can't go any higher either)
I set the game settings to Low instead of medium.
I disabled the ''FXAA'' under 'options' (in the little menu when you launch the game) You will find this under the advanced tab. (not sure if this makes a difference or not but because the lag was gone, i decided to leave well enough alone)
AA is off, so is Anisotropic Filtering. ( i have them enabled through my Cathalyst Control Center)
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I made the following tweaks in the SkyrimPrefs.ini folder located under C\Documents\Games\Skyrim:
Change the default setting of iPresentInterval to 0 (default setting is 1) You will find this under [Display]
Change the default setting of bMouseAcceleration to 0 (def. setting is 1) You will find this under [Controls]
---------Don't forget to make a back up of the original ini file in case you want to change back later------
This got rid of lag, mouse delay, whatever. I no longer feel half drunk and have much better control over my character.
However i noticed a difference in mouse sensitivity between the y and the x-axis, so i did the following:
Go to C\Documents\Games\Skyrim again, but this time open the Skyrim.ini file (NOT the SkyrimPrefs.ini)
Add the following to the bottom of the list:
[Controls]
fMouseHeadingYScale=0.0150
fMouseHeadingXScale=0.0200
There is no [Control] in that ini file, so i included it (the word control in brackets) Some websites included it, some did not even mention it so i decided to try it this way first and i can't really notice a difference between x and the y axis any more.
Despite the fact that the game suggested i play at medium settings, i found that only low works for me (which probably does mean that my videocard is a bit outdated after all and Thenson is right)
I can't really see much difference in textures now that i play on low, but that may be because i'm still half way through the tutorial. For now i am happy that i can finally play the game and hopefully we'll get a mod that upgrades textures or something like Qarl's texture pack. That improved my Oblivion a lot
I hope this helps someone out. Good luck!
Edit: forgot to mention that i tried out all my settings by playing offline. Not sure if that made a difference or not, but i was afraid that the connection to Steam may be 'slowing' things down.
Edited by wolfsangeleyes, 15 November 2011 - 12:12 AM.