Well, thats what I did:
1. Reinstall the game
2. There are no newer drivers than the ones I have
3. Tried reverting the drivers to some old ones that I know not to cause the problem.
4. Pathing the game
None of these worked!
And about formatting - how do you imagine formatting 120 GBs... si this is a no-no for me.
Edit:
So I got to play with EVERY single option in the sound, gameplay, graphics, etc. menus... Turns out the higher the refresh rate is, the higher this "lag" is, so I set it to minimum(60Hz), turned off VSYNC but the game is still unplayable!