Global Unreal

turning off AA( Value 0 ) and AAtiles in UT preferences helped the game smoothness. I also have application default for AA in my video card settings.

System spec, Dual core, Gtx 650, D3D9

To say you do not use a mouse driver is inaccurate.
If you do not have a driver for a piece of hardware, Windows cannot talk to it.
I believe what you mean to say is, you do not use the manufacturers driver, and rely on the MS compatibility driver.
Big difference.

The main problem with all mouse drivers is the mouse acceleration option. That must be switched off.

I've probably already written it here before but I will explain again so everybody is clear.

OpenGL often gives better performance on nVidia, because if fully uses your card.
On ATI cards it ignores the GFX RAM, so if your system RAM is slower, you will not be running at full speed.
On a laptop, this makes no difference.
intel disabled several HW-GL features, so GL performance is just poor on intel GFX.

So as a rule of thumb; OpenGL for nVidia and DX9 for everyone else.
Also I notice that many people that compare the 2 renderers, never bother to make sure both are set the same.
Both have very different compatibility defaults, so will both perform and look different, until you correct the settings.

Also linking to the out-dated renderers is no help for the current development of UT.
Please update your link to point to the currently developed versions, where you will also find the updated audio renderers, that you are obviously missing.
http://www.oldunreal.com/utpatches.html
Trying to convince Papa Smirf to continue to support UT with updates is difficult, if the users keep spreading links to obsolete stuff.
Chris no longer develops the renderers, and it has long-since moved back to OldUnreal.
Both Chris and Kentie visit OldUnreal and are aware of the current developments, It would be nice if the UT community would catch-up.

I will also clarify why the multi-core modern PCs may or may not be an issue.
The important stage is during install, not while running.
When you install UT, it makes a note of your clock speed and never changes it.
You can over-ride this during launch, by specifying your full CPU speed like this;
UnrealTournament.exe -CPUSPEED=2800
or adding the speed to the target info in the icon properties.

If your variable speed CPU was busy during installing UT, it will have a more accurate idea of the hardware it has to play with.
Simply setting the Windows power option to max-performance during install time, should then allow you to use balanced mode for normal use.

BTW. The option "NoAATiles" should be set to true. This disables the antialiasing of overlays and text so you can still read stuff.
This only works with the built-in AA option.
If you use the options in your driver, it will over-ride the UT settings.

BTWBTW. I am currently using UT with no problems whatsoever on a 4-core AMD 64bit, Win7 running in balanced power mode.

Thanks for discussing the semantics of the term "mouse drivers" man, that's really helpful. You know what I meant.

The OpenGL on nvidia and d3d9 on ati thing isn't relevant to modern gfx cards and renderers. Believe me, opengl runs at full speed with UT on any modern gfx card.

I wasn't aware of the audio fixes and such at oldunreal, but they aren't used at all around here. I'd rather stick with what's been proven to work.

The -CPUSPEED tweak isn't necessary at all if you have everything else setup correctly, like in the OP.

NoAATiles doesn't do anything if you have useAA=false (as is suggested in the OP)

I use the OpenAL audio drivers. The difference between those and the Galaxy drivers is night and day for me. I believe the usefulness of OpenAL depends on your sound card, though.

Everything just sounds better and with more positional precision.

Yup the new audio is the best thing since DX9 and updated GL, but...

No that would just be wrong, taking advantage of newer hardware, just so you could have twice as many sound channels and raytraced sound, that reacts to the environment you are in, and objects you are near.
Shocking wizardry. It must be evil
You do at least have the official EAX patched Galaxy renderer to use, so it ain't so bad

Heaven forbid, people ever have to use a non-standard important thing, like a master server.... Oh wait a minute...

On a serious note, anyone having issue with the OpenAL in Windows Vista and upwards may find that because idiots that make important decisions, have dropped the legacy EAX/EFX support in their drivers.
You may have to use "ALchemy" for Creative
http://www.guru3d.com/files_tags/alchemy.html
and "3D Sound Back" for Realtek (on Win7 run as Vista SP1)
http://www.guru3d.com/files_details/rea ... eta_1.html

To be honest though I find the SwFmod renderer is a better option on my Win7 box, and can highly recommend it as it also has an extra sound-occlusion option
Don't forget, all the new renderers support 64 channels rather than 32.

Combine any of them with a nice surround-sound, and you'll almost be able to play blindfolded.

Tried them, didn't like them. I am using the updated galaxy though, not much of a difference to be honest.