Seriously, 60FPS? Now i'm jealous haha. I've tried every setting from high to low, shadows off etc, still drops down into 20fps quite a lot, even at 800x600 low, 1980x1020 doesn't seem to lower fps much more. Could having low ram really affect my performance so much? As far as I know Windows 7 uses about 350, leaving me with 1650. I've heard you can get XP down to 100mb with some tweaks, leaving me with a bit more ram.
Did you get decent FPS even in the large outdoor areas with all of the characters and npcs?