1. Go into the tower at, I.E. it is the default. And lower clip board. 
     Wait about 15 secs doing nothing. Now look right, Did the View stutter as it paned around?
Yes
2. Release the right view ,after you have been looking forward,  look right again, was there stuttering this time?
No
3. Turn off detail terrain, Save it by pressing ok, Exit game , then repeat test 1 and 2.
No and No
4. Fly online with detail terrain OFF for a while, did almost all you stuttering go away?
Still some stuttering, major Frame Rate fluctuations, from 7 to 60.  Not sure if this is relevent or normal, but my CPU is pegged at 100% when in game.
DXDIAG
Time of this report: 8/4/2009, 22:30:19
       Machine name: 
   Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 3 (2600.xpsp_sp3_gdr.090206-1234)
           Language: English (Regional Setting: English)
System Manufacturer: HP Pavilion 061
       System Model: PP163AA-ABA A800N
               BIOS: Rev. 3.11
          Processor: AMD Athlon(tm) XP 3200+,  MMX,  3DNow, ~2.2GHz
             Memory: 1536MB RAM
          Page File: 867MB used, 2567MB available
        Windows Dir: C:\WINDOWS
    DirectX Version: DirectX 9.0c (4.09.0000.0904)
 Card name: ATI Radeon HD 3650 AGP
     Manufacturer: ATI Technologies Inc.
        Chip type: ATI display adapter AGP (0x9596)
         DAC type: Internal DAC(400MHz)
       Device Key: Enum\PCI\VEN_1002&DEV_9596&SUBSYS_00281787&REV_00
   Display Memory: 512.0 MB
     Current Mode: 1680 x 1050 (32 bit) (60Hz)
          Monitor: Plug and Play Monitor
  Monitor Max Res: 1600,1200
      Driver Name: ati2dvag.dll
   Driver Version: 6.14.0010.6822 (English)
      DDI Version: 9 (or higher)
Driver Attributes: Final Retail
 Driver Date/Size: 6/2/2008 23:21:06, 306688 bytes
      WHQL Logo'd: No
  WHQL Date Stamp: None
              VDD: n/a
         Mini VDD: ati2mtag.sys
    Mini VDD Date: 6/3/2008 02:20:54, 3100160 bytes
Device Identifier: {D7B71EE2-D6D6-11CF-916E-2220A1C2CB35}
        Vendor ID: 0x1002
        Device ID: 0x9596
        SubSys ID: 0x00281787
      Revision ID: 0x0000
      Revision ID: 0x0000
      Video Accel: ModeMPEG2_C ModeMPEG2_D ModeWMV8_A ModeWMV9_A 
Hope this helps.
ttflier