What sort of setting should I configure to get FCE Ultra to run smoother?

[reign80]

I have this computer:
Toshiba Satellite 2405-S201 Laptop
XP Home Edition
Pentium 4 CPU 1.60GHz
512MB RAM

I'm playing Bad Dudes vs Dragon Ninja right now and whenever I walk the character is disappearing every once in a while. Not really sure what is going on.
I'm looking at the video configuration at the moment and I am not sure what is the right things to select.

 

[Jale]

Does this happen with a similar game? If I'm correct, this slow down is present in the real console. Happens with many games.