So the game runs smoooooothly on the gtx285 intel i7 860 4gb ram combo BUT WAIT now I get random crashes that says Driver stopped working. SO WTF do I use old drivers and get sheety FPS? or keep these ones and get good FPS but random crashes?

Try reinstalling the drivers. Maybe you got a bad update.

I have the Nvidia 330M GT (Notebook card) and noticed a slight improvement when updating to 260.99. Of course I also did a clean install of Windows 7 on a fresh HDD too. I also noticed a nice difference when I disabled V-Sync. To answer your question though, I would choose better performance over better stability any day. Having a smooth playing game is super important to me. My game runs at a solid 60 FPS except for the occasional stutter when it loads larger distant objects. I'm also on a 130 hr character with around 20 mods installed and a save file of almost 9MB's. I haven't had a single CTD since doing a clean install of Win 7. I've put about 15 or so hours since the clean install. It still doesn't run quite as well as I would like because of the fade distance object stuttering but oh well I guess.