Skyrim runnig too slow

Check if the morphological setting is enabled in CCC & disable it.

Yeah it was already disabled still no gains.

I had the same problem in skyrim when I updated to 12.4 & the solution to close my logitech keyboard driver. It is strange but it works all the time.

Anyway, have you tried installing the latest drivers & the catalyst application profile (12.6beta)?

yes just installed it now, nthings seems to improve much. the problem is that the FPS just drops below 15 constantly in open fields , and the max i can c is in caves around 30. Still it isnt playable at all

Just for a test, can you drop your resolution to a lower one like 1366x768 and see if the fps will improve. I just want to identify whether something else is bottlenecking your skyrim performance.

yes dropped to the same resolution 1366x768 now getting 60 constantly! BT still is dre some specific reason y it chopps at 1600x900

Then it is definitely the 5850 that is bottlenecking the skyrim. I'm not sure also why it should drop to 15fps at 1600x900m though. The 5850 should be strong enough but there isn't much review of skyrim running on the 5850. But even then, whatever glitch there is about skyrim running slow on the 5850 should have been fixed by later catalyst releases.

What happens if you bring back the resolution to 1600x900?

for the first 5 minutes or so the game runs at 50-60 fps bt then it gradually drops to 20-25 marks

I would expect it to drop but not to less than half the fps under 1366x768. I would suggest that you experiment on the game setting. Did you happen to enable any mode (HD environment, lush grass, ) from Nexus or any modding software or modifying any parameter like water reflection, etc. under skyrimperf.ini?

no not at all. has it got to do with windows or stuff i have service pack 1 only

I do not think so.
I have win 7 ultimate service pack as well but I have 6950 so I can not compare my experience with you. I'm sure you have searched for solution elsewhere. Just in case you haven't seen these:

http://www.neoseeker.com/forums/52479/t1697369-skyrim-p...
http://www.geforce.com/optimize/guides/the-elder-scroll...

download gpu-z and keep an eye on the vram usage when playing... If the card runs out and starts to use system ram, it will slow you down. (though it shouldn't, not at 1600*900 anyways)
http://www.techpowerup.com/gpuz/

My PC is not as good as yours (Phenom II x4 3.7GHz and Radeon 4870) and I play it on high 1920 x 1080 without any lag ever. I suspect your CPU or GPU is overheating if it plays OK for 5 mins most likely the GPU if dropping the resolution fixes it (it takes the load off the GPU reducing its heat). Try turning the fan to 100% for a bit &/or monitoring your temps with HWMonitor or similar you can also try running the card at stock settings.

I think it's overheating. Check your temperatures when bad lag happens with HWMonitor - you can download it from www.cpuid.com . I suspect it because you said it plays fine at first and then drops down gradually.

Played for half an hour at 1600x900 again for 1st 20min constant at 60 n then dropped. HWMonitor reports average 3 temps at 60 whereas GPUZ reports 85C. The ram usage was around 500 -600 MB. My CPu 3 temps were at 90,65,90. So do you think its overheating and is dre any way to control Cpu fan speeds.Thnx.

Damn yea it's overheating.. your CPU should not hit 90°. I'd suggest cleaning the heatsink, reapplying thermal paste and reseating it.

yeah the heatsink is just probably full of dust... easy enough to clean it.