here is a viedo of whats happening - FRAPS looks to stay at 60FPS so I dont know what is causing this stuttering - I even set the graphics to medium as you can tell by the video. I took this video about 5 minutes after a cold boot.
here is my new rig
Intel Core i5-2500
MSI P67A-C43 (B3) LGA 1155 Intel P67 SATA 6Gb/s USB 3.0 ATX Intel Motherboard
Creative Labs X-Fi extreme gamer
G.SKILL Sniper Low Voltage Series 8GB (2 x 4GB) 240-Pin DDR3 SDRAM DDR3 1600
OCZ Vertex 3 VTX3-25SAT3-120G 120GB SATA III SSD
SAPPHIRE Radeon HD 6950 2GB
**Video is still uploading.
Core i5-2500 - G.SKILL Sniper 8GB DDR3 1600 - SAPPHIRE 6950 2GB - Antec 750W - OCZ Vertex 3 120GB SSD - Windows 7 64bit - ASUS 25.5" LCD 2ms 1920x1200