Ok let's run through this:
mouse lag: was solved for me with one little adjustments in the game options menu (have the german version at the moment, so im not sure what it is called in english). No ini change nescersarry on my side.
black and white: Yeah in the middle of the snow storm everything was white! No wonder

snow is white. As soon as I got down very vibrant colors again because the lovely sun was shining.
field of fiew: Not sure yet if I like the standard ini setting. At the moment I leave it. But you can change it easily.
menus: I begin to adjust. Still I think FO3 or NV was easier to navigate. Never liked the Oblivion menu. It's no catastrophic but a lot to adjust.
fighting: No troubles at all. It works like in all Bethesda games. Maybe your mouse troubles are the problem.
Summing it up: I can't see anything which would justify "the game is horrible" in your title. I have a lot of fun playing it right now.