I have the game, runs just fine on my laptop and desktop.
Your problem is your settings are too high for your graphics card, and post what kind of processor you have.
Desktop GTA IV on latest Patch- Non Steam Avg 30-60FPS
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ASUS P5Q Plus
C2Q 9400 2.66GHz @ 3.2GHz
4GB 1066MHz DDR2 RAM
GTS250 1GB
500GB 7200RPM HDD x2
Win7 Pro X64
GTA IV gfx settings:
reflections: medium
textures: high
night shadows: off
resolution: 1920x1080 60hz
visibility: 60
vehicle density: 60
detail distance: 70
shadows: medium
water: high
Laptop ASUS G60Vx GTA IV on latest Patch- Steam Avg 25-40FPS
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C2D T7450 2.13GHz @ 2.4GHz
4GB 1066MHz DDR2 RAM
GTX260m 1GB
320GB 7200RPM HDD x2
Win7 Pro X64
GTA IV gfx settings:
reflections: low
textures: high
night shadows: off
resolution: 1280x720 60hz
visibility: 50
vehicle density: 45
detail distance: 55
shadows: low
water: low
The game is much better after the last two patches, but it is still CPU intensive. A 2.4GHz minimum is still needed really, and a 2.5GHz Quad is recommended. For higher Graphics, I'd recommend a HD4870 or better or GTX260 or better.
For that quality shown in the pic to play at a comfortable framerate the following is needed, along with a few shorcut command lines.
-nomemrestict
-norestrictions
Core i7 920 2.66GHz
4GB 1333MHz DDR3
GTX460/HD5870 1GB
That would have the necessary processor and graphics overhead for it.