I went back to my cab....
- set my Nvidia to the default (restored) settings (Except for your two exceptions)
- set VP's FPS limiter to "1"
I will have to say, I felt my system was pretty smooth... but doing all your settings and making all the other settings were correct.... it is for sure EVEN SMOOTHER .... is it just wishful thinking on my part??... I hope not... I really do feel having all these exact settings has help on the smoothness and shutter free system....Thank You!
I also want to say.... this all being with in one post and not scattered throughout the forum, should help most people get equal results on there systems...
anyway will also post my performance tab and compatibility tab... look good?

You're missing the bottom here of the Performance settings in your screen capture and a couple items are missing (one totally key item especially). I'm assuming even though you can't see it in your capture, that you also have the "Use visual styles on windows and buttons" option selected because if you don't you would not be able to retain your "Enable Desktop Composition" settings and a couple other ones after applying or choosing OK and exiting this screen / tab. Windows is weird this way as if you don't enable the visual styles option at the bottom, it let's you think that you can enable the Desktop Composition on it's own and shows that box selected, however, when you exit the screen / control panel and come back in, it's cleared. This does this on both my systems and on my cab I need to have at least a few other items selected to get as thin as possible but still actually allow / enable Desktop Composition.
You should post another shot / capture with the full screen settings (maybe consider even editing the post above) as if someone else is looking at yours as a reference, it can / will be misleading especially if they save it all / apply and think it's all cool, then leave it as is, because of that weird Windows quirk, they won't know that Enable Desktop Composition actually got cleared and not actually enabled (and for that matter a few other Aero options around it go actually missing / no longer show). Like I say, I'm assuming you have it on as you would not have been able to go into that screen and see that Desktop Composition was actually checked off.
The other key test to verify within VP if you think that you may or may not have Desktop Composition on or not is a pretty clear one - hit F11 during game play and if the stats are flickering, you're not using it (i.e. going to not be getting the smoothest / stutter / hick-up free play possible). You want to see those stats solid and without flicker if you want to be certain you're allowing Desktop Composition / Aero / Windows DWM to be working.
This again is all unfortunately at the expense of a little bit of flipper lag and Desktop Composition would be good to actually be able to disable for this reason if it wasn't for the introduced ball fluidity issues.
So I thought I was getting pretty close to getting the setting dialed in. I have a GTX660, I believe, i5 and 12g of Ram running Win 7. I have my settings in Win 7, VPX, and NVidia control panel set as hauntfreaks suggested, and was getting good fps and stutter-free gameplay. With F11 pressed, I did notice that the stats were solid, whereas before I changed the settings they were flickering as HF mentioned. Well, then I started playing yesterday, and the the stats sporadically started flickering, and I could see the FPS dropping anywhere from down to 45, 30, or even sometimes in the teens. It really didn't seem to happen during any visually intensive sequence either...but the stutter was very noticeable. What is also weird..any maybe my setup always did this but I never noticed, but every time the stats on VP started flickering on screen, I could hear a faint sound change coming from my physical vp computer...I still can't quite tell what it is, but it almost like a change in fan rpms...like I said, fain't but audible. and it coincides exactly with every time the stats start flickering...the flickering only lasts about 1-2 seconds every time it occurs, but it keeps happening and takes away from the game play.
I honestly don't know if my setup was doing this prior to yesterday, which is when I upped my ram from 6G to 12G. But it seems very strange and I don't recall having this sporadic stutter when playing before. anyone else experiencing this? For the most part I've only noticed it when playing VPX, though that might be because that's all I've really been playing lately, which of course is AWESOME!