First is the mouse lag, yeah, its software accelerated, it floats and takes an age to be accurate.
Open SkyrimPrefs.ini in your "Users" folder, and change
bMouseAcceleration=1 to
bMouseAcceleration=0. You now have no more mouse lag. While you're at it open Skyrim.ini, and at the bottom of the [Display] section, add
iPresentInterval=0. That'll turn Vsync off which helps tremendously with the framerate. I can verify both settings.
Adding to that oppression is the field of fiew, again, designed for consoles with no thought for PC gamers.
Hit the tilde
"~" key on your keyboard to open up the console and type:
FOV 85, or any number you like. It will adjust the FOV in real-time so you can keep typing in numbers until you are happy with what you see.
Next up, the menus are fiddly as hell.
With the mouse lag gone I have found the menus much more enjoyable now, and use the mouse a lot more than WASD + E.