I started taking FPS drops as well. Started yesterday I think.
i was getting like 45-60 in field and 30-40 in town
now I am getting 30-40 in field and 15-25 in town
<cool FFXIV image here>


If your running windows vista or 7 if you right click the ffxiv shortcut, click on the compatability tab, then check the box next to "disable desktop composition" it will disable all aero features (which can use up grahics resources) and it should virtually eliminate lag, and allow you to turn up the settings.
For people who care about aero, your aero features get restored when you log out of the game.
This method worked for me and im on medium - high settings on my 512MB laptop graphics card, rather than low settings

I never get lag or have my FPS drop below 60fps, but the game does shutdown when I try to install things like TeamSpeak.
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