My enemy of FPS - NPCs?!

[Jetstar88]

I've been having issues with FPS recently, more specifically, when in the presence of NPCs. Whenever my character is facing multiple NPCs (usually 2 or more), there is a noticeable drop in FPS. I can run all around the world in high detail and be fine, until I come across something alive, and then BAM!

Is there a way to allocate more RAM to the NPC processes? (whatever they may be)

I doubt half of this makes sense. If anybody wants to explain to me in more detail, I'd love it.

My system specs (taken from dxdiag):

Time of this report: 8/10/2012, 10:19:35

Machine name: DEATHSTAR-2

Operating System: Windows Vista™ Home Premium (6.0, Build 6002) Service Pack 2 (6002.vistasp2_gdr.120402-0336)

Language: English (Regional Setting: English)

System Manufacturer: Dell Inc.

System Model: Inspiron 518

BIOS: Phoenix - AwardBIOS v6.00PG

Processor: Intel® Core2 Quad CPU Q6600 @ 2.40GHz (4 CPUs), ~2.4GHz

Memory: 3070MB RAM

Page File: 1660MB used, 4687MB available

Windows Dir: C:\Windows

DirectX Version: DirectX 11

DX Setup Parameters: /PackageInstall

DxDiag Version: 7.00.6002.18107 32bit Unicode

 

Card name: NVIDIA GeForce GT 430

Manufacturer: NVIDIA

Chip type: GeForce GT 430

DAC type: Integrated RAMDAC

Device Key: Enum\PCI\VEN_10DE&DEV_0DE1&SUBSYS_0828196E&REV_A1

Display Memory: 2271 MB

Dedicated Memory: 993 MB

Shared Memory: 1278 MB

Current Mode: 1920 x 1080 (32 bit) (60Hz)

Monitor: Generic PnP Monitor

Driver Name: nvd3dum.dll,nvwgf2um.dll,nvwgf2um.dll

Driver Version: 8.17.0012.9610 (English)

DDI Version: 11

BGRA Supported: Yes

Driver Attributes: Final Retail

Driver Date/Size: 2/29/2012 19:59:00, 15009600 bytes

WHQL Logo'd: Yes

WHQL Date Stamp:

Device Identifier: {D7B71E3E-4EA1-11CF-545F-24281FC2C535}

Vendor ID: 0x10DE

Device ID: 0x0DE1

SubSys ID: 0x0828196E

Revision ID: 0x00A1

Revision ID: 0x00A1

Video Accel: ModeMPEG2_A ModeMPEG2_C ModeVC1_C ModeWMV9_C