Hi GolfPro,
I wonder if this is perhaps due to the limitation of your laptop processor. I run my game on a quadcore which allows me to use effects=2 without a glitch.
Upgrading to a powerful processor made the biggest change for me, more than upgrading my videocards (moved from 7900 SLI to 8800 GT SLI).
By the way, I use the standard Nvidia driver for my cards: 169.21. Before with my 7900 cards I tried those NGO drivers. They performed nicely but had some problems with stability (game crash).
My recommendation is to move to a more powerful processor if you want effects=2. Flight simulators need a lot of resources in terms of calculation power....
Cheers,
Eckhart