Installed the game and it runs with >200fps on a 260X in my 1080P TV but with tearing. Activating vsync in the game menu or in the catalyst caps the fps to 30.

If a run the game on 720P the game locks on 60FPS.




Realy weird issue.

It's explained here. See FPS and VSync.

:)

Sounds a bit odd, when it's capped at 30fps in 1080p have you tried lowering settings and zooming in while staring at something simple like a wall just to see if it's performance related. Might sound strange but sometimes old games don't perform as well as one might expect on newer hardware.

Also you could try using D3DOverrider to force vsync instead of the game options or graphics cards software. Long shot but may as well also try setting the CPU affinity to all or 1 cores and see if that changes anything.

Like Hickorys link explains, with vsync enabled, the frame rate matches monitors refresh rate, in this case 60Hz, ie. 60 fps.
Except, at Full HD, the computer is not fast maintain 60fps, so the monitor has to show every frame twice, frame rate is halved to 30fps.
And yes, lowering settings should enable full HD at 60fps, though I'd certainly pick 720p with better settings.