Well my setup is almost the same except I have a Core 2 Quad.

I am not experiencing the kind FPS that I am seeing other people report either but it's not as bad as 7.

Are you using KC's ability to split up your processors? Are you using it to set your maxFPS?

That is the only thing I can think of other than the fact that you have a Dual Core.

Have you run your system manager while running the game to see where the bottle neck is?