With that graphics card I am amazed it plays at all....lol...
You NEED a better card..
All the best Brett
That's a bit of an unfair statement. Sure it's old but that cards decent.
I used to run Skyrim on High settings with a 9600 GSO.
More on topic, the rest of your Spec is fine for Skyrim, maybe a slightly better processor wouldn't go amiss and maybe a HD6/7 series card or nVidia GTX 5 series card. That'd easily achieve 60+ fps on max settings.