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That's on the video options page, right? Before you click on the "Advanced" icon? If so, I didn't mess with that. I went to "Advanced" and hit the "very high" settings button.

I have Far Cry running at the highest settings and I have no lag whatsoever. I'm running an AMD 64 3400+ (2.4 Ghz), 2 x 512 Mb memory, and a Radeon 9600Pro. I'm surprised it's lagging on yours.