Ok so here are my specs.

Case: Antec Twelve Hundred V3 Black Steel ATX full tower with 7 fans
Motherboard: G1 Killer series "G1 Sniper" x58 chipset
CPU: Intel Core i7 - 950 Bloomfield 3.06Ghz LGA 1366
GPU: EVGA Geforce GTX 580 (Fermi)
PSU: Cooler Master Silent Pro Gold Series ATX 1200w
RAM: 16gb of G.SKill RipJaws DDR3 1333
SSD: Samsung 470 Series 64gb SATA II Internal Solid State Drive
HDD: Samsung Spinpoint F3 1TB 7200 RPM SATA 3.0gb Internal HD
Reader: HP 24x Multiformat DVD Burner
OS: Windows 7 Home Premium SP1 64-bit

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Ok so my first problem is this game gets my GPU hot even with all the fans at medium my GPU gets in the 70 to almost 80 degree's Celsius range during play, I'm not even sure how hot my CPU is but when I put my hand at the back of my tower all I feel is hot air and I have a huge exhaust fan on the top 220mm fan and 2 120mm fans in the back. I play BattleField and HQ HD Modding up Skyrim and they never put my GPU that hot.

my second issue is I frequently get lag and things load very slowly as well as my frame rate is crappy sometimes even freezing on a frame every so often when I get close to a camp and it always happens in the main cities.

heres my settings
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Full Screen
1920x1080 Resolution
2x MSAA
General Drawing Quality: 8 Standard
Background Drawing Quality: 3 Standard
Shadow: Standard to high sometimes (I've been testing this out)
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No ambient occlusion
no depth of field
cutscene effects are on (cut scenes glitch from time to time)
Texture Quality: High
Texture Filtering: High
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I also have my GPU forcing V-Sync because I had taring and I saw that this fixed the problem. I have the Anti-aliasing - Transparency set to Multisample and Triple Buffering is also on as well.

Could anyone help me set up my configuration so it runs as smooth as possible and still looking fanominal while not over heating my machine. I've seen some videos on youtube that look freakin amazing and I can't help but wonder, I mean my machine is a beast and I can't seem to get the stability and look they get and I don't hear of anyone elses high end machines getting hot like mine. What am I doing wrong because I'm frankly tired of tweaking settings to try and get it stable.