Can someone please help me with the optimal settings for a 165Hz monitor in Quake Live w/NVIDIA 1080?

My current hardware is:

Intel i7-6700 4 GHz
ASUS PG279Q 27" Monitor
Resolution 2560x1440

I have set both Windows and NVIDIA to 165Hz and all NVIDIA settings are at default. GSYNC is enabled.

Gameplay is not smooth and mouse/KB feel disconnected from gameplay, generally laggy/rubbery. Opponents appear to slide/warp around and gameplay seems to "rewind" and generally just feels horrible.

My Lagometer looks good and ping is ~19-22. However, even when playing at 50 ping servers it feels the same.

Any help would be greatly appreciated.