Not sure if this has anything to do with the OP's problem, but after removing SHIII from the very same Dell computer it was installed on when the game first came out (which ran smoth as glass!), and then re-installing it recently, I started the game and the graphics were horribly slow! Outside the boat was bad, but inside (the command room mostly) was unplayable.
Turned out there is an option in the graphics section of the menu called "synchronized" or Sync. After checking that box and then restarting the game, it fixed the problem.
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