Dolphin certainly is NOT perfect at this stage. It has many issues with multiple games (although there are lots games that run perfectly (check the "Perfect in Dolphin" thread)). The only reason why I think krypking suggested changing watchdog was so that some troublesome frames would be skipped or something. Other than that, this is nothing a watchdog setting change can fix. You'll simply have to wait and play this on your Gamecube for the time being.
Windows 7 RC Build 7100 x64 || Windows Vista SP2 x64
Intel Core 2 Duo E8500 (3.16Ghz)
ATI Radeon HD 4870 512MB (750Mhz/900Mhz)
OCZ Vista Gold 4GB RAM (2x2GB) DDR2-800
Asus P5QL-E
OCZ GameXStream 600W
Intel Core 2 Duo E8500 (3.16Ghz)
ATI Radeon HD 4870 512MB (750Mhz/900Mhz)
OCZ Vista Gold 4GB RAM (2x2GB) DDR2-800
Asus P5QL-E
OCZ GameXStream 600W