I recently made a CFG from all the accumulated information that's out there right now, and I noticed it running extremely smooth whereas before it was unplayable.

However I ran that same cfg with a different mouse (only difference in specs setup was that it is a laser and it was at 500hz) and the stuttering came back. I do driver cleans and CCleaner sweeps so I don't think it's a conflicting registry edit, the old mouse was an optical at the same 400dpi and 125hz. (mie 3.0)

I also noticed some things untouched everywhere else in:
R_clipsize = 360
r_clipfps = 30 (I made it 60)
r_codec = MPEG3 (I made it VP8)

These are theater mode cmds, and I'm not sure if it was them alone, and I'm still unsure as to what this does to your theater mode "demo."
I'm gonna test the mouse thing as I have a few at my disposal.

From what I have observered theater mode recording is done by a client that connects to the sever called Treydemoclinet or something like that. Your computer is not involved in recording the demo, infact if you look at your past games the theater mode films start when this client connects regardless of when you join the server.

R_clipsize is the video resolution that theater mode films are rendered at when you record a film using theater mode.

movie_start Film.avi
movie_stop Film.avi

are the commands to render a video to your local disk

This is the config i've had the best results with so far.

I've tried almost everyone out there, And they aren't as great. I've also tried standard, With just high or low settings, Still no good smooth feeling.

In my own belief, Call of duty is about jumping around, Reacting fast, having a smooth and awsome gaming session. With BO, it's almost impossible to do that.
With this Cfg however + changed resolution to 1280x720, I can play moderatly good atleast, NukeTown, Cracked and Hanoi still laggs though.

Any other tweaks i can add to get a more smoother feel?

I run a system of:
Phenom2 x4, 3.2Ghz quad.
4gig ddr3, 1600Mhz
GeForce Gtx 460
500Gb WD Caviar Black
Internal soundcard, VIA sound, 7.1.

in BO, rate has more of an impact than in cod4 and directly influences the ping.

lowering rate to 9000 i.e. resulted in a drop from 65 to 100 ms for me.
in cod4 I could lower it to 6k and still have a 65ms ping.

is there an advantage in lowering rate ? i allways assumed you set it to the max.