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Whenever i go and play katamari damacy, the hub and tutorial is completely fine, but anything else lags to the point where its painful.

the lag:
When going in game, the speed is about 40-60 fps. Not too bad but whenever moving cpu characters go on my screen or if im at an angle where i can see a lot of objects, it drops to 20-40. When the katamari ball gets over 5cm, it stays like this. The sound is choppy and hard to listen to.

The graphics issue:
Most of the main graphics are ok, but sometimes its as if its a puddle that grows smaller when you get closer to it. This is also the case with big 3d objects that has not got a solid base.

Processor: Intel Core I7 processor 2.20ghz

Graphics card: Nivedia Gforce540.

Speedhacks: all enabled except except fast CDVD. bar 1 is set to 2, and
bar 2 is set to 1.

The rest of the emulation settings are set to default.[/b]

what do the EE% & gs% say when getting slowdowns ?

Update: Setting Clamping to full made a big difference, it does still lag a bit but not as much as it used to

EE: 55 - 45
GS: 90-75, sometimes over 90

ok. either your cpu or GPu is struggling
what if you set gsdx internal resolution to native ?

It's already set to native.

then your cpu is probably not strong enough.
YOu can try increasing speedhacks, But i highly doubt you'll get something playable with that CPU.