Besides your CPU your system is nearly identical to mine. I can run it on highest settings @ 1024 X 786, no AA and AF with decent frame rates throughout the game, and a bit laggy at the end. I think it should be normal if you're getting absolutely no lag at medium settings and some lag in highest settings at a high resolutions.
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Silent Tuned | 3D Marks 06: 11566
Q6600 2.4ghz CPU | Gigabyte GA-P35 LGA 775 MB
EVGA 8800gt 512mb Video Card
G.Skill 4GB Ram | Western Digital 400GB HD
X-Fi Xtrememusic Sound Card
Antec P180B Case | Scythe Ninja HSF
CM Real Power Pro 650watt PSU
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