That was one of the first things i checked, vsync is turned off in nvidia global settings.
I might have found the problem though, i "upgraded" to the 290.53 beta drivers (released around december 20th 2011 i believe) around the same time i noticed my fps drop, I'm going to revert back to 285.62 later today and see what happens.
Wish me luck
edit: That was part of the problem, i can definitely continue working with fraps now, but now i have another problem that makes even less sense than my first problem.
viewtopic.php?f=3&t=1179&p=11351#p11351 If you have any ideas let me know.