Wind Waker lag during combat

[SkippyGonzales]

Hey! The game runs perfectly until I hit somebody during combat, and the sparkling effect goes off. Makes combat pretty much unplayable.
I have tried every setting, and seeing as how I used to play Twilight Princess on the same computer without lag (I even had a worse gpu back then),
I should be able to run this game smoothly.
I have tried both x64 and x86 versions and neither works. Any ideas?

These are my specs:
Windows 7 x64
Intel Core i5-4670k 3.4GHz
Nvidia GeForce GTX 960 2GB
8GB RAM