Screen shakes/rubberbands on fullscreen

I'm having a weird problem playing the game Outlast on fullscreen. It's not exactly low fps, not exactly screen tearing, and not exacting stuttering. Rather it's almost a combination of all 3. The screen "shakes" and "rubberbands to the last few frames" horribly, especially when I move or look around. Now here's the weird part: if I try to record it with game capture software like OBS, the footage will NOT have the weird shaking/rubberbanding and will appear perfectly smooth, so in other words it's not really recording what's happening on my screen for some reason.

Anyone know what in the world might be causing this? I have no problem playing other games on full screen. Here's a vid link. Sorry I had to record it with my phone since as mentioned, the video capture software won't capture what's actually happening on my screen.

Computer info:

Lenovo IdeaPad V510P
Windows 8.1 64-bit
Intel i7-4700
Nvidia GT750M
Latest GeForce Exp and drivers (358.50)

The game used to work perfectly fine full-screen. I didn't install anything (other than a few games and the occasional Windows update) between this time except updating the Nvidia drivers. I forgot what was the driver version before updating since I haven't updated a long time.