I updated my drivers again just in case some rogue dll was to blame but like SLupo and SageAcrin I'm on very old hardware here so the "latest" was dated from 2007

I found
johnnyzero's nightly builds and working backwards I replaced the 1.0.5 exe with each of them and ran the game. Doing this I was able to find the first instance of the slowdown occurring in the following build:
Code: Select all
Build revision:
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commit e623e69de8f977a9a301ba33ee5582defac1273d
Author: DarkGod <darkgod@net-core.org>
Date: Sun Jul 14 22:47:50 2013 +0200
T-Engine changes since last build:
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Fixed strange graphical artifacts around some texts
Text outlines are much better now with shaders enabled
Text outlines added
The one posted immediately before it, commit 946f0b9acf2772dd5c7a34a3274523e598481e71, works good for me!
So to SLupo, you might try what I did, get the win32 build by johnnyzero here:
Link
and copy it over your 1.0.5 version. I can't guarantee it will validate the online profile, but mine seems to pass.
And to DarkGod, I hope this helps isolate it. Something with the text outlines no doubt, though I'm sure it is more to do with hanging onto old hardware we have no business using.