settings tweak help needed...
Here are the only changes I'd do, and it will hardly effect how beautiful the game looks..should stop the hiccups and improve framrate.
Env Reflections = High Quality
Water Effects = High Quality
Adv. Shadow Settings = Disabled
Shadow Quality = High
Advanced Occlusion Settings = Disabled
Ambient Occlusion = Med. Performance***
Suppress FX When Close = Disabled
PhysX = N/A
Particle Physics Quality = High
World Texture Quality = Very High
Character Texture Quality = Very High
World Detail = 200%
Character Detail = 100%
Max Particle Count = 10,000 to 25,000***
Verticle Sync = Enabled
Mouse Cursors = Color
Use Geometry Buffers = Enabled
Anistropic Filtering = 2x
Texture Crispness = Smooth
Shader Quality = High
Depth of Field Effects = Disabled***
Bloom Effect = Disabled***
Bloom amount = N/A***
Desaturation Effects = Enabled

So now that the game doesn't freeze up... now I need to get my settings right... What's happening is every so often there is a brief freeze up, like in milliseconds, and then continues on. Obviously caused by my settings so... what should i tweak?
(not turning world detail down.... i like it high as the draw distance is too close at lower)
Gfx Card = 8800GS
Res = 1440x900
CPU = 2.40GHz
3GB RAM
Win XP
res = 1440 x 900
refresh rate = 60
gamma = 100%
FSAA = 2x
Env Reflections = High Quality
Water Effects = High Quality
Adv. Shadow Settings = Disabled
Shadow Quality = High
Advanced Occlusion Settings = Disabled
Ambient Occlusion = High Performance
Suppress FX When Close = Disabled
PhysX = N/A
Particle Physics Quality = High
World Texture Quality = Very High
Character Texture Quality = Very High
World Detail = 200%
Character Detail = 100%
Max Particle Count = 50,000
Verticle Sync = Enabled
Mouse Cursors = Color
Use Geometry Buffers = Enabled
Anistropic Filtering = 2x
Texture Crispness = Smooth
Shader Quality = High
Depth of Field Effects = Enabled
Bloom Effect = Regular
Bloom amount = 100%
Desaturation Effects = Enabled