I did enable vsync and it gives me the same type of lag...I have a very capable machine because if I don't limit anything, it runs smooth on ultra settings.
As soon as I limit the fps through console, or enabling vsync...I get a very choppy laggy experience.
I was doing this to reduce the workload on my machine, because I could care less to get 70-90fps, all I am happy with is 50-60.