The in-game Vsync setting is a lazy implementation of the xbox version and causes noticeable input lag. Because it doesn't affect the game directly, forcing driver-level Vsync (from Nvidia Control Panel or other graphics driver software) can be a solution to the tearing while preserving the low input lag of SF4.

However, driver-level Vsync causes a periodical stutter that although purely visual, can make the game feel less smooth.
It should be noted that Gsync also causes this stutter

Perhaps because the game was ported to PC at a time when monitors with high refresh rates weren't as common, properly setting up a monitor running at anything higher than 60Hz to work properly with USF4 is tricky.
What I will recommend goes against many other guides, notably the original classic. It is important to keep in mind that it only applies to high-end systems that have no trouble whatsoever running the game at a constant 60fps.
If you follow my guide and you over-estimated the performance limits of your machine, you'll end up making things worse.

USF4 has 3 framerate settings that you can find in-game under Settings > Graphics Settings.

• Smooth is a setting for systems that can't run the game at a constant 60fps, it compensates with extra frames in moments where the game slows down, most commonly due to trouble rendering SFX.
  
  
• Fixed is a setting for mid-tier systems, it ensures the game has a constant frametime by forcing the rendering of frames even if they aren't ready, which brings a smooth experience to systems that would otherwise occasionally drop frames.
  
  
• Variable is a normal framerate, it outputs 60fps and it's up to your PC to render them with a constant frametime.

The Smooth setting causes many issues, such as not being able to save replays from local versus and making online matches very laggy.
The Fixed framerate is commonly recommended and optimal for online play as it reduces the time it takes to synchronize framerates between peers, reducing latency, and ensuring framedrops from either side will not cause extra lag.

However, the Fixed framerate setting will cause visual stuttering in monitors set to a refresh rate higher than 60Hz.
If you want to reduce screen tearing by using a high refresh rate, you need to use the Variable framerate.

The tricky part about making the game properly recognize the monitor it is being rendered on has a refresh rate higher than 60Hz is that there is no in-game option to tell it so.
You need to edit the config.ini file in Documents\CAPCOM\SUPERSTREETFIGHTERIV.
Edit the RefreshRate line to match the refresh rate of your monitor.

Once you have edited that line, you need to make sure the config.ini file is set to read-only. Otherwise, the game will not recognize this setting.

This setting is only visible in the config.ini file. Put simply, it forces a thread in your processor to be dedicated to rendering protocols.
It has been known to cause performance drops as the setting is only there for debugging. If you think it might be causing problems with your game, set it to OFF.

The USF4 Fullscreen setting is simply a stretch of the windowed mode and not a dedicated graphical setting. It does not affect latency or performance.