My Skrim runs very smooth on my i7-3770 and radeon 6850 however when looking around up left, up right, down left etc particulary when moving I get a jaggy scrolling effect. Moving forward while looking left, right etc is absolutely fine, just when doing things like forward, looking left while moving view up it looks a little " jaggy "

Is this just a game or engine limitation or is it something that can be fixed?

If someone says its my setup then fair enough, but apart from this my game runs incredibly well.

Any help appreciated.

Look through the Prefs file My Games/Skyrim, and search for "pad", without the quotes. Set each line to 0. This usually makes mouse movement based stutters go away.

There is the Stutter Remover that can help with this. It also caps frame rates to get rid of the issues from running the game too fast. And, it masks the frame rate drops making the game real smooth.

Also, Windowed Mode can help for some systems with performance. If so, there is a mod that removes the window borders.