Everytime I start the game, and reach to the starting menu of the game theirs this extreme lag and my graphics drivers are updated not sure if its my computer that cant support the game but cant even begin playing the game cause of this LAG.

You can try adjusting the settings in the options menu. Failing that, find the UDKSystemSettings.ini file in your game's "\UDKGame\Config\" folder.
Try setting some of these values to false and then launching the game again:

Bloom=false
DynamicLights=False
DynamicShadows=False
MotionBlur=False
bAllowLightShafts=false
LensFlares=False
FogVolumes=False
bAllowD3D9MSAA=False
AmbientOcclusion=false

You can also try manually running the Unreal Engine 3 redistributables installer for the game and then launching again; you can find the UE3Redist.exe in the game's "\Binaries\Redist\" folder, that's the one you need.

I tried those settings and no luck at all, game still Lags really bad.

Look like i got the wrong support section, I was talking about the game Viscera Cleanup Detail and how i terribly lag at the menu.

Have you tried manually downloading and installing Microsoft .NET 4.5?

The only thing I can think of that's causing this is hardware incompatibility.

Seems like my Windows 8 already has it installed, not sure whats going. Seemed like a really cool game to play but cant get it to run without lag.

Have you tried running it in windows 7 compatibility mode?

Maybe also try running it in windowed mode, or with a lower resolution.
You can set these in the UDKSystemSettings.ini file.

I fixed the problem, the problem was that my graphics video card driver was never installed. lol I'm enjoying the game so far. thanks for help