Graphical Problem, help me out! =*(Follow

Hey everyone, Im having a little trouble with lotro. Ive bought a fairly decent graphics card.
I bought the Inno3D Geforce 8500GT 800MHz 512MB Graphics Card with
by nVidia and have 3gb ram. My PC is pretty good for games.
It suggests I play on Very High settings but Im happy on Ultra High, even if the frame rate does drop to about 20fps, it looks nice. However, Im suffering a problem when I move around. It judders. Its not so much a case of having to load things but when I move around the camera seems to skip about while it tries to catch up if you see. I have tried changing every one of the settings to see if I can stop it but it doesnt. Even if I set it to the lowest preset, the framerate is high but I still get the same problem.
Does anybody know what this is? Is there a setting either on the game or Nvidia control panel that I need to disable?
Thanks in advance for any help you can offer.

Yeah, it does on all settings.