Well. Adding the optimized kernel gave a marginal increase in the video performace, but I just got a major jump in FPS:
1978 frames in 5.0 seconds = 395.584 FPS
3534 frames in 5.0 seconds = 706.792 FPS
3707 frames in 5.0 seconds = 741.368 FPS
3673 frames in 5.0 seconds = 734.490 FPS
3637 frames in 5.0 seconds = 727.265 FPS
3675 frames in 5.0 seconds = 734.837 FPS
by switching back to the xorg 2.6 intel drivers (2:2.6.3-0ubuntu9.4) are setting the Apperance->Visual Effects to Normal from the default setting of None. I am going to switch back to the 2.7 intel drivers and see if the performance is the same.
UPDATE: The MAIN reason I had this major spike was that the previous tests where done with VNC connected, although the client was minimized and there was not data being transfered over the network, still just having the VNC server connected seemed to have caused a 500 FPS hit on glxgears.
Nevertheless running the kuki kernel still gave a good improvement in FPS.