Wohoo, I found the problem!
In Catalyst, under Gaming->3D Application Setting, there is something called SMOOTHVISION HD:Anti-Aliasing. I had turned this on when I installed CloD. I changed to Use application settings and turned off Morphological filtering and now my input lag is gone. And my VLC works as normal again!
The game is completely different now that its almost working as its supposed to. There is still a lot of stuttering when flying over cities, but when flying over water there is only occasional stuttering. But no input lag! So far I´m now a happy camper, now I´m only waiting for a patch to deal with the stuttering!
