Well your not alone in this issue. Its not that the game isn't smooth, It's that when using a high end GPU like a 7800 GTX the frames shoot up to 50, 60 when driving without other racers or alot of crashes. Racing games are smooth at 30 FPS, but when the FPS is as high as 55 and you crash all of a sudden, or come in contact with alot of race cars they FPS drops quickly to about 40-30, this quick drop gives a slight stutter.
I have this same issue with my 7900GT. On 1280x1024 the frames are as high as 69 FPS at some places, then during a crash they'll drop to 40-30 causing a slight hitch because of the drop. My Frames measured using fraps were 48.5 average, 68 max, and 25 min. But I still get these stutters because the frame rate is jumping from 30-68, or vice versa during some areas.
The only remedy would to turn on v sync which will limit your frames and stop them from jumping above 45. This way when you crash, etc the frames will drop to about 38-30 and you won't have a hitch like you would when the frames drop from 50-30. I tried this and it's ok since a game like that is very playable at 30-45 fps. That way you won't have the fps jumping from 60-30, etc. Therefore eliminating the hitches. 2 gig of ram would be better as it would dtop the constant loading of textures back and forth from the memory to the HD.