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Put it in 720p and it works perfectly fine.
Yup, seems to be screen effects that are slowing things down, whereas in GT5 it was polycount (mostly). That's OK, it's easier to trim pixel pumping than it is an LoD system - hence the tessellation. I mean, it should be a lot better for GT6.
One thing I don't like is the full-screen blur. Turn that off, depth of field is not necessary in replays anyway, leave it for photomode.