Hi shu77, after struggling with your problem for a couple of days I finally found the solution!!! I also tried the legacy mode and it worked but with artifacts at the borders of the screen. Well it turned out my MWR for Steam VR settings were wrong.
Make sure the following file: E:\SteamLibrary\steamapps\common\MixedRealityVRDriver\resources\settings\default.vrsettings
has the line: "motionReprojectionMode" setting set to "auto".
Mine was set to "none"... As soon as I changed this to "auto", set the steamVR settings for DCS to Motion Smoothing: "Enabled" and turned the legacy reprojection setting to "OFF" it was all butter smooth..!
Hope this helps!
