1. Set Aspect Ratio to Standard (4:3)
2. Disable V-Sync.
3. Set "EE Cycle Rate" in Speedhacks section to "1"
4. Set "VU Cycle Stealing" in Speedhacks section to "0"
There ya go - should have a constant 60 fps now, but they'll be some screen tearing.
This is one of those games that gets a major penalty if you enable v-sync.
Here's a Screenie @ 3x res:
Mind you, I'm getting that on my Phenom II.
Your i3 should be doing better than that.
If changing your settings to the above four things doesn't work, then the issue is with your video card.
It's time to upgrade it.
EDIT:
O Hay, I just realized I haven't played this gamr past the first town on PCSX2.
I'm gonna give it a try and see what my FPS is.