You might try to get new video drivers... it helped me out big time!
at first performance was sluggish, especially when water splashes over the periscope or when there are lots of (beautiful) fuel explosions, but after updating this all is gone and it spins like a kitten!
BTW, i don't think your system is too slow for SH3, as it pretty much compares to mine...
P4 3 Ghz
1 GB RAM (DDR2)
Radion X300 PCI express
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