Well after playing for the last two hours of different video settings, I have actually got mine working "smooth as butter" which seems like the hot button phrase on here. Here is what I found.
My system: 32GB RAM
Titan XP
Oculus Rift
Windows 10
Intel i7 3.3
These tests were done with the Oculus HUD and performance enabled to watch the true FPS
1. DO NOT enable distance viewing. If you change it to anything but low the FPS will drop about 25% in most scenes with any object. Plus you will get the "double vision" look on buildings.
2. DO NOT enable shading of any type. Same results as number 1.
3. In the VR settings, lower the pixels to the LOWEST setting. Then override it with the oculus toolkit to what you see fit. I can easily push 2.0 but that is with a Titan XP. Your results may vary.
4. I bind my cockpit view to a voice attack command, titled RESET. Then I sit back quite a distance from the sensor, and reset. This brings me forward in the cockpit which allows much better viewing of the screens, camera, etc.
5. Bind a key or VA command to the camera ( I am playing with the free plane for now) and disable it when not needed. It chews up FPS.
6. DON'T enable your mirrors. This is probably a given, but FPS drops like a rock.
7. Enable Textures to HIGH. It will make the cockpit look wonderful but doesn't seem to have almost any impact on FPS .
8. DO NOT enable any water settings higher then low. Even if there is a lake in the far distance, it will try to render it and FPS drops again.
Doing this I am at a very comfortable 90FPS for almost everything. I haven't tried it in combat yet, and doing things like firing missiles will drop FPS for just short bursts, but, overall, very comfortable settings.
Final notes, I don't notice any difference enabling MSAA or FSX type settings. No fps drops, but also, not clearer picture. Finally, I disabled HDR, and, same results for me, no difference in my graphics view so turn it all off. Disable all the things you don't need in other settings to keep processor settings lower...