Alienware M17X R3 Latest Nvidia Drivers Problem

Hi, I have a Alienware M17X R3 with a Nvidia 580M. I have a problem with the performance. When I play a game the FPS drop suddenly from 35-40 to 3-5. Just for a few seconds. My problem now is whenever I download the latest Nvidia Drivers the laptops graphics become glitchy and especially wherever there is blue color the screen is flickering there. 

Any idea what's wrong or how can I fix this?

ps. Laptop has latest BiOS, latest vBios for Nvidia and all Windows Updates Installed. Runs Windows 7 X64 Ultimate.