I'm getting a lot of what I thought was lag in game. I was told it might be graphic card related.

Spec's

Operating System: Windows 7 Ultimate 64-bit (6.1, Build 7100) (7100.winmain_win7rc.090421-1700) Language: English (Regional Setting: English)
System Manufacturer: MSI
System Model: MS-7380
BIOS: Default System BIOS
Processor: Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz (4 CPUs), ~2.4GHz
Memory: 6144MB RAM
Available OS Memory: 6144MB RAM
Page File: 1657MB used, 10627MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7100.0000 32bit Unicode

Card name: NVIDIA GeForce 8800 GT
Manufacturer: NVIDIA
Chip type: GeForce 8800 GT
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0611&SUBSYS_C8023842&REV_A2
Display Memory: 3311 MB
Dedicated Memory: 495 MB
Shared Memory: 2815 MB
Current Mode: 1680 x 1050 (32 bit) (59Hz)
Monitor Name: Generic PnP Monitor
Monitor Model: CMC 22 W
Monitor Id: CMO2228
Native Mode: 1680 x 1050(p) (59.954Hz)
Output Type: DVI
Driver Name: nvd3dumx.dll,nvwgf2umx.dll,nvwgf2umx.dll,nvd3dum,n vwgf2um,nvwgf2um
Driver File Version: 8.17.0011.9621 (English)
Driver Version: 8.17.11.9621
DDI Version: 10
Driver Model: WDDM 1.1
Driver Attributes: Final Retail
Driver Date/Size: 1/11/2010 22:03:33, 11862120 bytes
WHQL Logo'd: n/a
WHQL Date Stamp: n/a
Device Identifier: {D7B71E3E-4551-11CF-677E-09E81CC2C535}
Vendor ID: 0x10DE
Device ID: 0x0611
SubSys ID: 0xC8023842
Revision ID: 0x00A2
Driver Strong Name: oem2.inf:

Any ideas anyone?

I'm getting the same thing, and I have the 8400GT. But sometimes it's fine? Maybe it is lag? Generally for me it happens when i'm on the ground, but certain systems (Such as Reglus) seem to have the effect as well.
The game tells me I need to update drivers, but every time I download the Nvidia update it tells me my card is not recognised!!

What OS do you have?

I'm using Vista

I was having the stutter issue.
I run a nVidia card.
There is a new driver. it was released after the date stamp on your post.
Also, go update your sound drivers.
For me the issue of ground / starbase stutter was fixed with 2 new drivers

My card driver is the latest one on the Nvidia website.

I downloaded and ran it twice just to make sure.