Got it sorted out. I installed the video driver
for GT525M from the Dell site it self (which was an older driver) and when i opened the Nvidia control panel, i saw under "3D settings", under "Adjust image settings with preview", "Let the 3D application decide" is selected. Before, "Use advanced 3D image settings" was selected. I think this caused the issue. Can play everything without a lag now. Thanks guys. Hope this helps.