To those of you not suffering from lag, don't let yourselves be ignorant of this. My game used to run perfectly, which I considered to be an immense achievement from Bethesda, considering how old the Xbox is and how good the game's graphics really are. But my save has climbed to 5mb and I am already seeing stuttering and pauses, even in tiny places like Riverwood, which was never evident before. There is definitely a developing problem that exists for both PS3 and 360 owners, so I sincerely hope Bethesda address the issue with both consoles, because the way it stands right now, I only hear of the PS3 receiving a fix.
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As for people advising others to install the game, this does not change the problem. There is also a texture streaming problem existing when installing he game, so I would recommend players don't do this until that is resolved, and even then, installing 360 games seems to always cause texture issues in certain games. I have seen increased texture pop-up, blurry textures that fail to load properly in many games when installed, yet Microsoft did not acknowledge this when I contacted them when the feature was first implemented.