Thanks for the replies.
This is with a fresh install of XPSP2 and I have tried every combination of settings I can think of and it doesn't change. If the framerate and refresh rate are the same it is perfectly, liquid smooth. If however, the framerate drops 1 frame below the refreshrate it instantly stutters, lags, skips, tears and blurs.
I tried60hz 70hz 85hz and 100hz and it all does it.
This problem goes away if I disable vsync but then I get the tearing.
I made a thread over at the UBI forums
http://forums.ubi.com/eve/forums/a/t...5/m/7281081836
if anyone knows what's going on here please reply. Thanks.