It only occurs when at close range to objects, walls, corners, especially inside.

Turning down the DPI on mouse helps a little ( may need to tweak exact DPS ) RAT 7

Also turning AA up to 8 helps to smooth out close quarter mouse speed....but I get weird graphical glitches at 8 AA. Still trying to figure this out? It doesn't affect fps..just cause purple trees, missing faces, floors etc...weird.

It's not fps related as that never budges and out side it is way less noticeable ( Due to slightly lower fps probably )

Only when the fps is at 60 and I'm close to something do I get this hitching, skipping. Almost like it's going too fast for the V-sync.

Not bad..just kinda annoying.

19 x 12
4 AA
16 AF
V-sync on
Sliders maxed, all options on.
Ultra except Shadows on high ( ughh )
Tree and Land Shadows on
No mods

Frame rates great mid 40s to 60 with that occasional city lag. ( lowering shadows to high improved this )

Not using Layer Acceleration mod again until the kinks are worked out. This did help with the mouse movement though.

Isn't there an ini tweak for this ?

Mouse acceleration / controller off

In skyrimprefs.ini there is a mouse acceleration command. Turn it off.

http://gaming.stackexchange.com/questions/34878/how-do-i-turn-off-mouse-acceleration-in-skyrim

Also it might be worth trying Skyboost (revision 3). At the moment it's better than TESVAL and so far doesn't seem to have have kinks left lol.

http://www.gamesas.com/topic/1325462-skyboost-topic-2/

Already did that ( Mouse Acceleration to 0 in ini )

Even stated that in my post.

Makes playing some inside areas a real headache. And I mean physically, a headache.

As long as I'm a certain distance from wall, objects etc...say 6 feet, the camera is fine...get close in and it hops skips and jumps across the scenery...all the while maintaining 60 fps. Mostly inside, tight quarters and in certain kinds of dungeons as well.

And only close up...I need to lower my DPI when say entering a small room with a chest in it...or long hall way etc.

My mouse is just too fast close up....ughh.

Raising AA to 8 helped. Luckily the graphic problems associated with such a high AA have not returned. Must be patch.

Would still like to use the Layer Acceleration as this really did seem to smooth out the mouse close up speed problem. Not ready yet though..