I'm having an issue where the game is not playable at all because there is around 1 second delay each time i press a movement key in game before my character starts moving. It's like it's waiting for keyboard repeat to kick in before anything happens. Any ideas?

Have you tried a different keyboard? Might be a problem with yours....

Ah yes, I have. The exact same delay with both keyboards, one regular USB, one wireless.

Without much of anything to go by, you won't be likely to get answers. Try starting from the outline below & we can at least get basics out of the way:

Basic Hardware Specification Chart (Empty so far)

Processor Manufacturer: AMD / Intel
Processor Name / Type: Athlon X2 / Pentium D / C2D / dual core / quad, etc.
Processor Speed: ?.? Ghz
Operating System / Service Pack: WindowsXP with SP #?, Win7, Vista ?
System RAM: ? ? GBs (MBs, if less than 1024 ? )
Video (GPU) Manufacturer: ATI / Nvidia (only those two are supported, PERIOD, so please answer which of them you have)
Video Card Model: (examples) Radeon HD 6670 / Geforce GTS 450
Video Card Driver Version: Catalyst ?.? / Nforce ??.??
. . (please use the numbers, and dates, *not* the word "latest")
Video display's default screen resolution
Video Card onboard RAM: ? ? ? MBs
Sound Card Manufacturer:
Sound Card Driver IDs:
Sound Card Model:

(And this is only for the raw hardware & driver variations. Potential software conflicts are far more likely to be game play problems, and developers cannot test for all possible program loads.)

Ok, here we go

Processor Manufacturer: Intel
Processor Name / Type: Quad.
Processor Speed: 3 Ghz
Operating System / Service Pack: Windows 7 EE SP1
System RAM: 6 GB
Video (GPU) Manufacturer: Nvidia
Video Card Model: (examples) Geforece GTX 460 1GB
Video Card Driver Version: Nvidia 290.53 beta (tried others as well)
Video display's default 1680x1050
Video Card onboard RAM: 1024 MBs
Sound Card Manufacturer: Realtek
Sound Card Driver IDs: Doesn't really apply i believe, it's just the onboard 7.1 sound that's in millions of comps by now
Sound Card Model:

Well, I didn't see anything, but the potential always exists that what you've got is something running that shouldn't be, and it's taking time to write something to a file (like a keylogger), so this is a time for a Clean Boot diagnostic.

What fps are you getting as you play (on average)? In cities...and around country-side?

Might be worth posting a dxdiag log.

I'm getting between 30-40FPS so far, a bit low but my CPU is kind of slow. Shouldn't cause 1 second lag each keypress though, and the lag is very constant, never becomes shorter or longer, always the same.

I would post dxdiag info but the forum tells me I'm not allowed to post links yet? There are no links in that info so I guess whatever regexp function is looking for them is poorly written or something

Tried clean boot as well, but no difference. I'm gonna see if I can get it running in linux later today.

you can post your dxdiag withint spoiler tags (remove the * to make it work):

[spoiler] test [*/spoiler]