I cant run at ultra settings without lagging and I believe my hardware should be more than capable. I can do ultra without lagging if I don't put on any texture mods (even the Bethesda High Res Texture pack lags me), but as soon as I install anything that adds high resolution textures, it lags. Sometimes its just for several seconds after I zone into somewhere (fast travel, dungeons, etc), and other times it's just periodic patches of frame loss.

My computer stats:
CPU: Intel i7 930 2.8 GHz (oc to 4.0)
GPU: Gigabyte GTX 560 TI
RAM: 8gb G Skill Ripjaw (2x4gb)
Windows 7 64bit
128gb SSD + 500gb HDD (skyrim and windows are on the SSD)

My video drivers are up to date, I have directx 11 installed and I have no problems playing anything else. I can see what the game looks like with a few HD mods on ultra through the lag and I would love to be able to play it properly without problems.

This is what I would like Skyrim to look like for me and what I believe my computer should be able to handle. If this is outside of reality, please let me know
youtube /watch?feature=player_embedded&v=zYnOr7bNDcA

or preferably this
youtube /watch?vF5H-w2n294k

I had to put youtube links weird cause it wouldnt let me post links

"Gigabyte GTX 560 TI"

On Ultra?

How much vram? What resolution? What are you calling "lag"?

If the "lag" is stutter / hitching when turning, moving, it's because you have more data to load than room to load it (to vram), so it's having to thrash and go get it.

You'll have to tweak settings until the data will fit or get a board with enough memory for it to fit.

I have 1gb vram. By lag I mean massive frame loss (dropping below 20fps). Like I said, sometimes its for several seconds when I load an area which I can understand is the game initially rendering an area, but other times its just bad all the time and I have to turn my graphics down to high.