thanks gryz for the replay. Yeah I had already planned to get myself a brand new pc, like build myself from scratch, but that project will have to wait till June. And the problem is, I want to play Skyrim now

Understood. I had a system that was twice as fast as yours (E8500 cpu and gtx260 videocard). I played with it in December. Was running ok, with some eyecandy. But in some places (Markath, Riften), the fps dropped to 10-20. Just too low to enjoy it.
AMD has released new videocards recently. And nvidia released a new card 2 weeks ago. I was waiting for those for ages. I bought a gtx260. And now I can play the game with all eyecandy I can think of. It just looks amazing. Best looking game ever. The videocard was pretty expensive (500 euros), but I am really happy I did it. With a $200 card (gtx560ti) you could also play with excellent eyecandy. In 3 weeks, Intel will release new CPUs. I'm gonna get me one of those (i5-3570k, $225). And a new CPU needs a new motherboard and ram. Because my case is old (7 years, and I hate it), I'm also gonna by a new case. Put in my old HDDs, SSD, PSU, my new gtx680, use my old keyboard, mouse and monitor. And I'll be as good as new. If you only play games once in a while, it's expensive. But if gaming is your hobby, it's actually really cheap. Try buy a horse. Or fly a plane as a hobby.

I just found out about this "skyboost" mod which boost your fps by quite judging by others. I will give it a try this evening. I am determined to make Skyrim run better this evening

Give it a try.
But don't be disappointed if it doesn't do much.
When Skyrim shipped, the release-team had made a huge blunder. They had compiled the engine's source code with debug settings. So that the developers could easily debug their code. While they should have compiled it with settings to optimize the code. One guy (Alexander Blade, I think) did some performance anolysis, and saw that the code was far from optimal. With some cool tricks he was able to replace some unoptimized code with his own code. That gave people 20-40% higher framerates !
Bethesda realized that they blundered. And in one of the patches in December or January, they actually released the game-engine code (the TESV.exe file) recompiled with proper settings. So that the game runs far more optimal. Now all the work that Alexander Blade did, isn't necessary anymore, because it is already in the official game. Alexander did continue to work on Skyboost. But the big gains are gone. His optimizations are now centered around using non-standard parts of CPUs. So on some systems you might see an improvement. On others you might see nothing. Anyway, give it a try. If it doesn't do anything, you can easily remove the mod.