I actually had the same problem and it was driving me bonkers.
I tried a whole ton of stuff, but I think I boiled the problem down to a couple things.
#1. If you have SQL Server installed (2005, 2008, whatever); turn it off on startup. I'm not entirely sure that this is what made the difference, but when I turned off my SQL 2008 instance the stuttering went away.
#2. If you have enough RAM ( 4GB works fine for me) Turn off disk paging.
To do this:
* Open Control panel
* Open System and Security
* Open *System*
* Click on 'Advanced System settings"
* On 'Advanced' TAB of System Properties dialog, click on 'Settings' button in 'Performance' Section
* On 'Advanced' TAB of Performance Options dialog, click on 'Change' button in 'Virtual Memory' Section.
* Turn off 'Automatically manage paging file size for all drives' at the top
* Select 'No paging file' option, and click 'Set', answer 'Yes', then hit OK
* You may have to reboot.
#3. I also grabbed new video
drivers, and Creative Sound Blaster
drivers. As well, I installed Creative AlChemy.
#4. Turn off indexing on the hard drive you installed the game on.
* Right click on the hard drive you isntalled the game on in My Computer
* Un-check the "Allow files on this drive to have contents indexed..." checkbox.
Now... other than #1; these will all give you general performance increases. As you can see... i tried a lot of things; and am enjoying the game much more now. Unfortunately, i tried so many things at the same time; I didn't exactly find the EXACT culprit of the stuttering. But these 4 steps did eliminate it for me (and it was baadd).
One final option... if these don't work
#* If you use multi-monitor... switch to one monitor only when playing the game. Windows 7 has made this really easy. Just hit 'Windows Key + P' when you're on the desktop; then select 'Computer Only'.
Likewise, you can bring it back to extended mode with the same shortcut.
Good luck, and let me know if any of this helped. If not... i'll try to pick my brain for other stuff I tried. The game is totally worth playing, and is much more enjoyable without that stuttering business!