Everything works great except some very minor lagging only outside cities and dungeons, but everyone I meet keeps telling me i am sick and I can not figure out with what and what I should do to fix. I am sure this has been asked before but did not find thread. Horses fly in my game a little too. Erratically.

bump

Go into the magic section. Then down to active effects I THINK this is where diseases show up.
You then need to go find a cure disease potion or maybe pray at an alter.

As for horses flying well that's just Bethesda being Bethesda.

It means you have contracted a disease somewhere along the line. Buy a cure disease potion or visit a shrine, there's 1 in whiterun, crazy dude talking infront of it. They clear you of disease and also give you a permanent effect. The ywork like the guardian stones, only 1 active at a time.

And to check what active effects you have going , check magic> effects....there will be a list of effects currently on you and from what, both good and bad. It's likely you just have something small like Rockjoint from a wolf or whatever the disease is called.

If you want to see which disease you have go to Menu > Magic > Active effects

To cure a disease you can either buy a potion of cure disease or you can go to a Temple and get blessed by a God which will cure your disease.