I have to note that micro stuttering is inherent to the GameBryo engine... Morrowind, Oblivion & Fallout 3 all suffer from it. It can never be completely removed.
Did you even look at wuit his video?
I would consider it unplayable, the way he has to play, his screen basically 'jumps/hops' every second.
I don't have his issue though and his hardware is better than mine on his 3rd setup.
