In GSdx, enable WildArmsoffset hack...
that artefacting is a consequence of upscaling, its been the bane of my existence running games at x6, its a real downer
[Main Computer] - CPU: I7 950 @ 3.2Ghz | GPU: Twin Nvidea GTS 450's SLI'd | RAM: 8GB DDR3 - 1600MHz | OS: Windows 7 Ultimate x64 | EMU: PCSX2 v1.0 | GS: GSdx32-SSE4 | SPU2: SPU2-X | PAD LilyPad | CDVD ****
You can get shadows in Hardware mode by going into gsdx and setting skipdraw to 1. They are not as dark as in software mode but its the best you will get for now
ROG Asus G74S laptop
Intel core i7 2670QM @2.2(3.1ghz turbo) Nvidia 3gig GTX560m 8 gigs DDr5 Blue-Ray Burner windows7 64 bit