Saw this over at the steam forums and it works great..at least on nvidia cards it seems...it might help others as well.
I was getting really bad FPS with default settings on my 9600GT.
To fix this, I use these settings: http://img28.imageshack.us/i/portali.png/
Basically, the default settings enable color correction and Vsync. Both of these lower FPS (Vsync on purpose does this to prevent tearing). Color correction not only lowers FPS, but makes textures blurry.
If you remove Vsync, you will get smooth gameplay but the tearing will be unbearable. What you want to do is increase the graphics enough so that your FPS is acceptable but minimizes tearing due to the FPS.
With these settings, I went from 10-30 FPS to 50-60 FPS with slightly better graphics and AF. There is still some tearing but it's much much better and playable. Give it a try