This isn't a problem solving request, more of a suggestion for people out there having lag issues recently with Latest ATI drivers..

I was running the latest Omega ATI Radeon Drivers and my FPS was awful to say the least and suffered from some bad lag. However, I installed the previous version of the drivers and now my problems have been solved.

So basically anyone out there running the latest ATI Factory Drivers or the Latest Omega Radeon drivers. Try installing the previous version

All previous Omega Radeon Drivers can be found here http://www.ngohq.com/home.php?page=...p;dwn_cat_id=14

Factory versions can be found here http://ati.amd.com/support/driver.html 

I'm currently running the second set in the Omega list on an x850 XT PE and it's fine !!

Good luck