By clamping the FPS at 60, you are telling your computer to ONLY show 60 FPS at all times. Now since your computer would normally dip to 18 FPS, it needs to make that 60 FPS because that is what you told it to do, and that is why you get the slow-motion effect.
Now, onto your problem. Nor really a problem, as simple understanding of hardware explains why you get the slowdown.
ATI radeon x1950pro 512mb
If this is indeed your graphics card, then this is why you are getting the slowdown. It is rather old and weak. But why does the game speed up when looking at the sky? Well, its a simple concept of not having your graphics card render what it does not see, so when looking at the sky, you cant see the surrounding landscape and objects, so the card is only rendering the sky, thus the "boost" in performance.
3gb ram (i'm also using a tool which allows fo3 to use more than its native 2gb)
This is another issue. You only have 3GB and you are giving the game access to more then 2. So you are basically forcing yourself into a bottleneck as the operating system and all background applications require ram as well.
this tells nothing. Is it a dual core or single core?