bystander :
Sorry, but no, you got that wrong. You missunderstood what they mean by "observed". The tearing occurs regardless, it is just more obvious when it is above your refresh rate, and I can provide an easy test for you to see for yourself very easily. (This topic is very commonly misunderstood btw).
Set your refresh to 60hz. Take MSI Afterburner and cap your FPS to 59. Now play a game without v-sync on in which you can maintain 59 FPS. When you turn your view you'll clearly see tearing moving up or down your screen. Set it to 60 fps and it'll be just as clear.
Even in the wiki post you gave before, it said "The artifact occurs when the video feed to the device isn't in sync with the display's refresh." That is any time, not when it is above your refresh.
Anyways, don't take my word for it, do the test I provided to you.
EDIT: here is another link that is interesting:
http://www.hardocp.com/article/2012/04/16/nvidia_adaptive_vsync_technology_review/#.UmCimxCJuCU
The result is a visually distorted image that can bother gamers. Note that tearing can technically occur if the framerate doesn't exceed the refresh rate, but it is much less likely to be noticed.
You're discussing a problem when the display driver overrides what the graphical engine tells it to do: v-sync. It is handled at engine level (or driver) and then afterburner caps the frame to be un-synched with the refresh rate; that's an artificial handicap. And in regular cases, like HardOCP correctly states, it happens but you barely notice it because it happens when the driver has to cut the frame rate to 30FPS instead of keeping it at 60FPS; there's a very small amount of time where you'll get tearing, but it's hardly noticeable (luckily). That's why you get tearing below 60FPS.
On the other hand, when you don't have the frame cap and just v-sync, So you're discussing what the link inside nVidia says, but its called "stuttering": a perceived change in motion. As simple as that.
Also, the same link you provide assures my own statements... ~___________~
I've been playing with this issue since i was 12 years old playing Quake 2. Trust me, I've done my homework more than enough to be pretty sure of whats going on here.
workedog :
That technology is over a year old now, my motherboard came bundled with a similar product. This kind of vsync is the standard now.
Your MoBo could not have come with that tech, since it's implementation is exclusive to nVidia (adaptive v-sync). I think you're referring to Virtu Logic's MVP software. It does provide the same, yes, but it provides it at a different level than nVidias. Not a bad product, but needs more refining since it quirks out a lot of games.
Cheers!