Well I've tried everything from all the suggestions with cfg files, uninstalling and installing the lastedt Nvidia Beta drivers, playing with the Nvidia Control panel, turning vsynch on and off, triple buffering...setting priority on rage.exe, running as adminstrator...Turned off Steam Community even turned off Windows Update and MS Security Essentials....and still back at square one. The video below is exactly what i'm experiencing.
http://www.youtube.com/watch?v=YpucfmjNV3I
Here is my machine specs:
Win 7 64 bit
i7 920
6GB
EVGA 560 GTX ti