What is your question? Do you want to know how to improve your FPS? If so, you should probably get a better graphics card.
Do you want to run the game at 1080p? If so, you'll need a monitor with a resolution of 1920x1080, which yours apparently does not have.
Yes, to all of the above. OCing will get you a couple of FPS, and drivers should as well. Lowering game settings will get you FPS as high as you want. Personally, I always change my settings until I can get a reliable 60+fps.
To OC, use MSI Afterburner. Raise the clock rate a little at a time, testing to make sure it's stable (no errors at all in MSI Kombustor). Then do the same with the memory clock.
You shouldn't have to overclock your CPU too much, I expect it to do fine at about 3.8 which is pretty reasonable.
Check if you have the 12.11 driver and if not update them.
Lowering your settings will give you the biggest fps boost since your GPU is your biggest bottleneck (but at 768p it should be fine).