I have my FPS limited to 60, on far, fancy and special lighting. It never lags or anything, and more than that is unnecessary for me, although I'm sure it could run with at least a thousand FPS. I want to be able to run other programs in the background and such, though.
WTH are you running minecraft on? Im getting like 50 plus with far distant and fancy graphics. Although it drops a bit to 40ish when a new chunk generates. And all of this is on a the horrible horrible VISTA OS!
EDIT: Turns out I had a shat load of extra junk running in the background, ended them and tried FPS test again. Now im getting 150-200