I had the exact same issue but with my 7800GS+ OC I updated the drivers to 97.95 and the game stopped working just a black screen. Downloaded the latest Forceware driver 93.71 WHQL and everything is smooth and stutter free maxed out.
Have a look at www.guru3d.com for the latest drivers. Try one of the WHQL drivers if you haven't already should fix it.
Cheers,
Dave
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