Coolbits ver 1,2 and 3 which is what you get with the "Sedona driver"is a little app that allows you to "see"preferences that nvidia usually have locked i.e with coolbits installed you can manually overclock your card, or if you are running the "Old" control panel you can scroll down to "Clock freq settings" and run a detect optimal settings for your particular card. As to why you are getting lag, and your card is by far better than mine, I'm misdified?
The only other modified driver set that gets near to the sedona on my rig are the X-treme drivers over at :
http://www.tweaksrus.com/
Navigate to there d/l section and look in the 32bit section for there Xtreme-G 84.56 V3 public beta, these drivers pretty well rock as well and I know work well with ALL nvidia cards. Sorry your having problems with the sedona's
Deep Six
*Edit* Just read your post again and you say that your AA was set to 8? are you sure cos as a default setting AA is set to 4X and anistropy set to 8 ? you can fiddle with these two settings but leave the rest alone in the control panel, I find that running AA above 4S does really slow things down, on another note do you have sync turned OFF in the game as this is a real frame killer